Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. Investor sentiment at the beginning of 2025 was positive. In 2024, US equities once again outperformed their global counterparts, and there was optimism that the new Republican administration would strengthen the idea of US exceptionalism. However, the first quarter did not meet those expectations. In the quarter, its Investor Class fund ARTSX returned -10.14%, Advisor Class fund APDSX posted a return of -10.10%, and Institutional Class fund APHSX returned -10.07%, compared to a return of -11.12% for the Russell 2000 Growth Index. Markets experienced weakness due to rising fiscal and geopolitical uncertainties during the quarter. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.
In its first-quarter 2025 investor letter, Artisan Small Cap Fund highlighted stocks such as MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI). MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) manufactures analog semiconductor solutions for wireless and wireline applications. The one-month return of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) was 11.79%, and its shares gained 24.25% of their value over the last 52 weeks. On June 2, 2025, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) stock closed at $123.74 per share with a market capitalization of $9.205 billion.
Artisan Small Cap Fund stated the following regarding MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) in its Q1 2025 investor letter:
“Among our top detractors were Veracyte, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) and Dayforce. MACOM Technology Solutions designs and manufactures high performance semiconductors. MACOM has beentaking steps to accelerate top-line growth and expand margins by addressing smaller, long-duration product cycle markets in which it can provide a differentiated offering, especially in compound semis (those made from two or more elements). Recent earnings results within its industrial, defense and data center businesses were solid, while its telecom business remained weak. Despite a better-than-expected overall result and forward outlook, shares weakened due to the negative sentiment surrounding AI infrastructure companies following the release of DeepSeek’s large language model, which raised questions about future growth in power consumption and hardware needs. MACOM’s datacenter revenues are not solely reliant on AI-driven investments, but on the buildout of data centers in general. Our view is the broader move toward cloud computing isn’t wavering, so we maintained our position.”
An aerial view of a semiconductor factory, with its intricate machinery and equipment.
MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) at the end of the first quarter which was 38 in the previous quarter. In the second quarter of 2025, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) reported record revenue of $235.9 million, up 8.1% sequentially. While we acknowledge the potential of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) and shared Aristotle Capital Small Cap Equity Strategy’s views on the company. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) was a top contributor to Artisan Global Discovery Fund’s performance in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2025 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.
