Artisan Partners, an investment management company, released its first-quarter 2026 investor letter for “Artisan Value Fund”. A copy of the letter is available to download here. The Funds’ Investor Class: ARTLX, Advisor Class: APDLX, and Institutional Class: APHLX returned -3.54%, -3.50%. and 3.50%, respectively, in Q1 vs, 2.10% return for the Russell 1000® Value Index. Performance was impacted by a market favoring momentum-driven stocks over quality factors, alongside company-specific setbacks. In Q1 2026, the US equity market showed mixed results: large-cap indices declined, while mid- and small-cap stocks gained modestly, reflecting a gradual broadening in market participation. Volatility increased, driven by concerns over artificial intelligence and private credit, and further escalated due to the outbreak of conflict in Iran. Despite uncertainty, the Fund focuses on identifying companies that can create value through cycles, particularly where market dislocations provide attractive entry points. 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 Value Fund highlighted stocks like Salesforce, Inc. (NYSE:CRM). Salesforce, Inc. (NYSE:CRM) is a cloud computing company that offers Customer Relationship Management (CRM) technology that brings companies and customers together and a leading detractor to Fund’s performance in the quarter. On May 22, 2026, Salesforce, Inc. (NYSE:CRM) closed at $180.18 per share. One-month return of Salesforce, Inc. (NYSE:CRM) was -0.06%, and its shares lost 34.07% over the past 52 weeks. Salesforce, Inc. (NYSE:CRM) has a market capitalization of $147.31 billion.
Artisan Value Fund stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q1 2026 investor letter:
“Among the portfolio’s biggest decliners were Salesforce, Inc. (NYSE:CRM), Accenture, Humana and PayPal Holdings, each of which dropped by 20% or more during the quarter. Salesforce is the largest provider of customer relationship management (CRM) software, a mission-critical tool for most businesses. Growth has slowed over the past year, unsettling investors who worry that generative AI could lead to the “death of software”—disrupting SaaS (software-as-a service) akin to how SaaS disrupted incumbents in the early 2000s. Salesforce, after all, pioneered the SaaS model when it launched in 1999. The fear is that SaaS could lose in multiple ways: Customers might require fewer seats as AI boosts productivity, or generative-AI companies might replace traditional SaaS applications with next-generation, DIY software that enterprises of all sizes can build themselves. A counterargument is that software platforms like Salesforce are already deeply embedded in critical customer workflows and may therefore be well positioned to deploy AI in ways that strengthen their moats. Recent softness appears more tied to a generally slowing macro environment than to AI disruption, which we believe will take years to unfold. Salesforce maintains a wide economic moat as the leading CRM provider and remains an active innovator.”
Salesforce, Inc. (NYSE:CRM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 57 hedge fund portfolios held Salesforce, Inc. (NYSE:CRM) at the end of the fourth quarter, up from 56 in the previous quarter. While we acknowledge the risk and potential of Salesforce, Inc. (NYSE:CRM) 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 Salesforce, Inc. (NYSE:CRM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Salesforce, Inc. (NYSE:CRM) and shared the list of best and cheap stocks to buy. 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.
