Artisan Partners, an investment management firm, issued its first-quarter 2026 investor letter for the “Artisan Mid Cap Value Fund”. A copy of this letter is available for download here. In Q1 2026, the portfolio underperformed the benchmark Russell Midcap Value Index as the market favored momentum-driven stocks over quality factors. Some holdings faced company-specific setbacks and negative sentiment. The Fund’s Investor Class: ARTQX returned -4.93%, Advisor Class: APDQX declined by -4.90%, and Institutional Class: APHQX fell by -4.97%, all trailing the Index’s 3.68% gain. The equity market in the quarter was mixed, with mid- and small-cap indices showing resilience despite lagging large-cap growth stocks. Volatility increased, initially fueled by interest in AI and private credit, but escalated after the outbreak of war in Iran, leading to rising oil prices. Sector performance varied, with energy leading the gains. The Fund continues to seek companies capable of value growth during market dislocations at attractive entry points. Also, review the Fund’s top five holdings to see its best picks for 2026.
In its first-quarter 2026 investor letter, Artisan Mid Cap Value Fund highlighted NOV Inc. (NYSE:NOV) as one of its leading contributors. NOV Inc. (NYSE:NOV) is a leading provider of equipment, technology, and expertise to the oil and gas industry. On July 7, 2026, NOV Inc. (NYSE:NOV) closed at $18.28 per share. One-month return of NOV Inc. (NYSE:NOV) was -13.28%, and its shares gained 36.21% over the past 52 weeks. NOV Inc. (NYSE:NOV) has a market capitalization of $6.56 billion.
Artisan Mid Cap Value Fund stated the following regarding NOV Inc. (NYSE:NOV) in its Q1 2026 investor letter:
“Our energy holdings were well represented among our top contributors, benefiting from higher energy prices. Permian Resources (PR), an independent oil and gas company, and NOV, the largest manufacturer of oilfield equipment, led the way. NOV Inc. (NYSE:NOV) ended 2025 on a solid note, with Q4 revenue up nearly 5% sequentially and earnings beating expectations, helped by strong execution, backlog conversion and market share gains even as broader global activity remained soft. NOV’s energy equipment segment has been a bright spot, benefiting from stronger offshore demand and a growing backlog that supports future activity. Cash flow generation has remained solid, allowing NOV to continue returning capital to shareholders. The Middle East conflict is creating near term headwinds for NOV through logistical and supply-chain disruptions, weaker aftermarket demand and softer customer ordering activity across the region. Thankfully, the company has reported no personnel injuries or facility damage, and its Saudi rig-building and composite pipe facilities remain operational. The disruption is likely to impact near-term results, but the longer term outlook remains intact, in our view, supported by NOV’s diversified global footprint and a still-constructive offshore backdrop that could help absorb or outlast the regional disruption.”
NOV Inc. (NYSE:NOV) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 39 hedge fund portfolios held NOV Inc. (NYSE:NOV) at the end of the first quarter, up from 33 in the previous quarter. While we acknowledge the risk and potential of NOV Inc. (NYSE:NOV) 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 NOV Inc. (NYSE:NOV) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered NOV Inc. (NYSE:NOV) and shared the list of best oil and gas stocks to buy for the next decade. 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
