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 Modine Manufacturing Company (NYSE:MOD) as a notable contributor. Modine Manufacturing Company (NYSE:MOD) is an industrial company focuses on thermal management products and solutions. On June 4, 2026, Modine Manufacturing Company (NYSE:MOD) closed at $301.21 per share. One-month return of Modine Manufacturing Company (NYSE:MOD) was 10.33%, and its shares gained 221.74% over the past 52 weeks. Modine Manufacturing Company (NYSE:MOD) has a market capitalization of $15.91 billion.
Artisan Small Cap Fund stated the following regarding Modine Manufacturing Company (NYSE:MOD) in its Q1 2026 investor letter:
“Top contributors in Q1 included Modine Manufacturing Company (NYSE:MOD), Twist Bioscience and MACOM Technology Solutions. Modine is a global leader in thermal management. During the quarter, management raised its growth outlook, supported by strong demand from hyperscale data center customers and its expanding portfolio of advanced cooling solutions. The company also announced the divestiture of its performance technologies business, repositioning itself as a pure-play climate solutions provider focused on data center and HVAC cooling. We believe this strategic shift enhances Modine’s long-term growth profile and margin potential, and we added to the position during the quarter, reflecting increased conviction.”
Modine Manufacturing Company (NYSE:MOD) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 61 hedge fund portfolios held Modine Manufacturing Company (NYSE:MOD) at the end of the first quarter, up from 69 in the previous quarter. In the fourth quarter of fiscal 2026, Modine Manufacturing Company’s (NYSE:MOD) revenue increased 47% driven by growth in Climate Solutions. While we acknowledge the risk and potential of Modine Manufacturing Company (NYSE:MOD) 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 Modine Manufacturing Company (NYSE:MOD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Modine Manufacturing Company (NYSE:MOD) and shared Riverwater Partners Small Cap Strategy’s views on the company. 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.
