Artisan Partners, an investment management company, released its first-quarter 2026 investor letter for “Artisan Value Fund”. A copy of the letter is available to download here. The Funds’ Investor Class: ARTLX, Advisor Class: APDLX, and Institutional Class: APHLX returned -3.54%, -3.50%. and 3.50%, respectively, in Q1 vs, 2.10% return for the Russell 1000® Value Index. Performance was impacted by a market favoring momentum-driven stocks over quality factors, alongside company-specific setbacks. In Q1 2026, the US equity market showed mixed results: large-cap indices declined, while mid- and small-cap stocks gained modestly, reflecting a gradual broadening in market participation. Volatility increased, driven by concerns over artificial intelligence and private credit, and further escalated due to the outbreak of conflict in Iran. Despite uncertainty, the Fund focuses on identifying companies that can create value through cycles, particularly where market dislocations provide attractive entry points. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Artisan Value Fund highlighted stocks like PayPal Holdings, Inc. (NASDAQ:PYPL). PayPal Holdings, Inc. (NASDAQ:PYPL) is a leading technology platform that provides digital payment solutions for merchants and consumers. On May 22, 2026, PayPal Holdings, Inc. (NASDAQ:PYPL) stock closed at $45.85 per share. One-month return of PayPal Holdings, Inc. (NASDAQ:PYPL) was 3.36%, and its shares lost 24.29% over the past 52 weeks. PayPal Holdings, Inc. (NASDAQ:PYPL) has a market capitalization of $42.21 billion.
Artisan Value Fund stated the following regarding PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q1 2026 investor letter:
“Among the portfolio’s biggest decliners were Salesforce, Accenture, Humana andPayPal Holdings, Inc. (NASDAQ:PYPL), each of which dropped by 20% or more during the quarter. In early February, PayPal, an e-commerce payments company, sold off following weak earnings and due to heightened uncertainty after a sudden CEO change. The company reported results below expectations and lowered earnings and transaction margins guidance. Performance was particularly weak in its high-margin branded checkout business, where growth slowed amid macro headwinds and execution issues. Share losses also accelerated in key markets due to intensifying competition from Apple Pay and Stripe, reinforcing concerns about structural pressure on PayPal’s core franchise. The earnings miss had been largely anticipated, leading us to reduce our position in late 2025 while remaining invested to assess management’s turnaround plan. However, the abrupt CEO dismissal was unexpected and increases uncertainty around the turnaround’s strategy and timing. With the increased probability that the leadership transition may delay improvement, we exited our remaining position.”
PayPal Holdings, Inc. (NASDAQ:PYPL) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 78 hedge fund portfolios held PayPal Holdings, Inc. (NASDAQ:PYPL) at the end of the fourth quarter, compared to 86 in the previous quarter. While we acknowledge the risk and potential of PayPal Holdings, Inc. (NASDAQ:PYPL) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PayPal Holdings, Inc. (NASDAQ:PYPL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered PayPal Holdings, Inc. (NASDAQ:PYPL) and shared top stock picks from Michael Burry stock portfolio. ClearBridge Large Cap Growth Strategy sold its stake in PayPal Holdings, Inc. (NASDAQ:PYPL) during Q1 2026. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
