Solid Earnings Lifted iRhythm Technologies (IRTC) in Q2

Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global markets saw an incredible but volatile quarter in the second quarter, shifting from deep declines to strong gains. In the quarter, its Investor Class fund ARTSX returned 7.30%, Advisor Class fund APDSX posted a return of 7.33%, and Institutional Class fund APHSX returned 7.36%, compared to a return of 11.97% for the Russell 2000 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its second-quarter 2025 investor letter, Artisan Small Cap Fund highlighted stocks such as IRhythm Technologies, Inc. (NASDAQ:IRTC). IRhythm Technologies, Inc. (NASDAQ:IRTC) is a digital healthcare company that designs and develops device-based technology to provide ambulatory cardiac monitoring services. The one-month return of IRhythm Technologies, Inc. (NASDAQ:IRTC) was 24.22%, and its shares gained 138.08% of their value over the last 52 weeks. On August 21, 2025, IRhythm Technologies, Inc. (NASDAQ:IRTC) stock closed at $166.68 per share, with a market capitalization of $5.355 billion.

Artisan Small Cap Fund stated the following regarding IRhythm Technologies, Inc. (NASDAQ:IRTC) in its second quarter 2025 investor letter:

“Among our top Q2 contributors were Flex, MACOM and IRhythm Technologies, Inc. (NASDAQ:IRTC). iRhythm develops and markets the Zio, a wearable patch that monitors irregular heartbeats. We believe its advanced technology is well positioned for broad adoption as doctors and insurers push for earlier detection of atrial fibrillation to prevent strokes. Shares climbed after strong earnings, with 20% revenue growth and gross margins rising to 69% thanks to scaling and efficiency gains. Management also raised its forward guidance.”

A patient being monitored with a portable ECG device, showing the effectiveness of the company’s products.

IRhythm Technologies, Inc. (NASDAQ:IRTC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held IRhythm Technologies, Inc. (NASDAQ:IRTC) at the end of the second quarter, which was 31 in the previous quarter. In the second quarter of 2025, IRhythm Technologies, Inc. (NASDAQ:IRTC) reported revenue of $186.7 million, representing an increase of more than 26% year-over-year. While we acknowledge the risk and potential of IRhythm Technologies, Inc. (NASDAQ:IRTC) 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 IRhythm Technologies, Inc. (NASDAQ:IRTC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered IRhythm Technologies, Inc. (NASDAQ:IRTC) and shared the list of best Russell 2000 stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 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.