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 Mid Cap Fund highlighted ServiceTitan, Inc. (NASDAQ:TTAN). ServiceTitan, Inc. (NASDAQ:TTAN) is an American cloud-based software company that provides solutions for connecting and managing a range of business workflows. On June 4, 2026, ServiceTitan, Inc. (NASDAQ:TTAN) closed at $74.33 per share. One-month return of ServiceTitan, Inc. (NASDAQ:TTAN) was 27.68%, and its shares lost 24.49% over the past 52 weeks. ServiceTitan, Inc. (NASDAQ:TTAN) has a market capitalization of $7.09 billion.
Artisan Mid Cap Fund stated the following regarding ServiceTitan, Inc. (NASDAQ:TTAN) in its Q1 2026 investor letter:
“ServiceTitan, Inc. (NASDAQ:TTAN) is a leading vertical software provider serving trade businesses, with key end markets in plumbing, HVAC and electrical contracting. Shares underperformed as the broader software sector faced pressure, particularly due to shifting investor sentiment around AI-driven valuations—a trend that has persisted for several quarters. The stock price was further weighed down by fears over near-term profit execution ability amid softer HVAC demand, partly driven by a weak new housing environment. Despite these challenges, the company delivered results and guidance above expectations. While we believe in the franchise and the long-term profit cycle potential, we are weighing whether this stock deserves to be in our CropSM.”
ServiceTitan, Inc. (NASDAQ:TTAN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 44 hedge fund portfolios held ServiceTitan, Inc. (NASDAQ:TTAN) at the end of the first quarter, compared to 48 in the previous quarter. While we acknowledge the risk and potential of ServiceTitan, Inc. (NASDAQ:TTAN) 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 ServiceTitan, Inc. (NASDAQ:TTAN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered ServiceTitan, Inc. (NASDAQ:TTAN) and shared Baron SMID Cap EFT’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.
