Artisan Partners, an investment management company, released its first-quarter 2026 investor letter for the “Artisan Small Cap Fund”. A copy of the letter is available to download here. US equities were mixed in Q1 2026, with major indices hitting all-time highs in January before retreating amid geopolitical tensions, changing monetary policy, and economic uncertainty. Energy stocks surged, outpacing the market, while value outperformed growth as investors moved from tech to commodity-sensitive sectors. Market leadership broadened, with mid- and small-cap indices performing better than large caps. The Iran conflict influenced market behavior. AI-related investments supported capital spending and earnings, though investor sentiment was mixed. The portfolio saw negative absolute returns but outpaced the Russell 2000® Growth Index, offering some downside protection. Investor Class: ARTSX, Advisor Class: APDSX, and Institutional Class: APHSX returned -2.72%, -2.68%, and -2.69%, respectively, in the first quarter compared to -2.81% return for the index. The market shifted towards cyclical, commodity sectors, less aligned with high-quality franchises, due to geopolitical events and energy shocks. Despite this, many portfolio companies maintained solid earnings aligned with their profit cycles. The Firm views this environment as supportive of its stock selection approach, focused on bottom-up stock selection across industries. 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 Small Cap Fund highlighted MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) as one of its leading contributors. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is a high-power analog semiconductor solutions provider serving applications across radio frequency (RF), microwave, millimeter wave, and lightwave spectrum. On June 4, 2026, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) closed at $382.74 per share. One-month return of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) was 6.35%, and its shares gained 206.09% over the past 52 weeks. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) has a market capitalization of $29.2 billion.
Artisan Small Cap Fund stated the following regarding MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) in its Q1 2026 investor letter:
“Top contributors in Q1 included Modine Manufacturing, Twist Bioscience and MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI). MACOM, a designer and manufacturer of high-performance semiconductors, continued to benefit from a favorable profit cycle across its data center, industrial, defense and telecom end markets underpinned by strength in long-haul communications and commercial satellite applications. The company reported results during the quarter that exceeded expectations and raised its forward outlook, driven by improved growth prospects in its data center business. We reduced our position as valuation became less attractive, but we still maintain a large CropSM investment.”
MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 45 hedge fund portfolios held MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) at the end of the first quarter, up from 35 in the previous quarter. In the second quarter of fiscal 2026, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) reported revenue of $289 million, up 6.4% sequentially and up over 22% year-on-year. While we acknowledge the risk and potential of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) 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 MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) and shared the list of best optical networking stocks to buy according to analysts. 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.
