Artisan Partners, an investment management company, released its second-quarter 2026 investor letter for its “Artisan Small Cap Fund”. A copy of the letter can be downloaded here. The fund reported strong absolute returns and modestly outperformed the Russell 2000® Growth Index, which gained 25.7%. Global equities rebounded as resilient US growth, moderating inflation, strong earnings and continued AI investment outweighed delayed rate cuts, rising bond yields and geopolitical uncertainty. Investor Class: ARTSX, Advisor Class: APDSX, and Institutional Class: APHSX returned 26.02%, 26.05%, and 26.11%, respectively, in the second quarter, compared to a 25.71% return for the index. Market leadership favored loss-making, highly leveraged companies, creating a difficult environment for quality-focused active managers. Health care was the strongest relative contributor, while energy, materials, financials and real estate also helped. Technology, industrials and consumer discretionary detracted, partly because the fund did not own oversized index contributors. Software holdings also weakened despite strong fundamentals. The fund remains positive on small-cap opportunities, AI infrastructure and health care, but has reduced software exposure and is staying selective as valuations rise and competitive risks increase. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its second-quarter 2026 investor letter, Artisan Small Cap Fund highlighted MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI). MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) provides analog semiconductor solutions for use in wireless and wireline applications across the radio frequency (RF), microwave, millimeter wave, and lightwave spectrum. On July 23, 2026, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) closed at $282.82 per share. One-month return of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) was -26.96% and its shares gained 95.88% over the past 52 weeks. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) has a market capitalization of $21.58 billion with a 52-week range between $118.16 – $418.90.
Artisan Small Cap Fund stated the following regarding MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) in its Q2 2026 investor letter:
“MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) designs and manufactures high-performance semiconductors. The company has benefited from a favorable profit cycle across its data center, industrial, defense and telecom end markets, supported by strength in optical networking, satellite communications and defense systems. Shares rose after the company delivered better-than-expected revenue and issued stronger-than-expected guidance, driven by strength in data center hardware, industrial and defense demand. We harvested some capital as the company’s market capitalization moved beyond the parameters of our small-cap strategy, while maintaining our conviction in the franchise and its profit cycle. Although valuation expectations have increased, we believe they remain reasonable from a multiyear perspective.”
MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) at the end of the first quarter which was 35 in the previous quarter. 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 ClearBridge SMID Cap Growth Strategy’s insights on the company. In addition, please check out our hedge fund investor letters Q2 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.
