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 Analog Devices, Inc. (NASDAQ:ADI). Analog Devices, Inc. (NASDAQ:ADI) is a US-based semiconductor company that engages in the design, manufacture, testing, and marketing of integrated circuits (ICs), software, and subsystem products. On July 7, 2026, Analog Devices, Inc. (NASDAQ:ADI) closed at $379.03 per share. One-month return of Analog Devices, Inc. (NASDAQ:ADI) was -3.47%, and its shares gained 56.16% over the past 52 weeks. Analog Devices, Inc. (NASDAQ:ADI) has a market capitalization of $184.62 billion.
Artisan Mid Cap Value Fund stated the following regarding Analog Devices, Inc. (NASDAQ:ADI) in its Q1 2026 investor letter:
“Outside of the energy sector, Analog Devices, Inc. (NASDAQ:ADI) was our largest gainer. ADI is the second-largest analog semiconductor chipmaker in the world behind Texas Instruments. ADI’s most recent results reflect a clear acceleration in operating performance as the analog semiconductor cycle improves. The company delivered strong growth, with revenue up roughly 30% year over year and earnings and margins expanding meaningfully, driven by broad-based strength across end markets—particularly industrial, communications and data center demand. Performance has been supported by improving bookings and a recovery in customer demand, alongside continued share gains and strong execution. Profitability has also rebounded, with notable margin expansion reflecting both operating leverage and a more favorable mix. Initially purchased in 2006, ADI is one of our longest held investments and has proven to be an excellent compounder of value, supported by its leadership position in a secular growth industry, strong balance sheet and consistent cash generation. The company operates in attractive segments characterized by high margins and sticky customer relationships. Its chips are designed into applications with long lifecycles—such as automotive, industrial and communications systems—and typically represent a small portion of overall system cost, making them difficult to displace once adopted.”
Analog Devices, Inc. (NASDAQ:ADI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 109 hedge fund portfolios held Analog Devices, Inc. (NASDAQ:ADI) at the end of the first quarter, up from 86 in the previous quarter. In Q2 FY 2026, Analog Devices, Inc. (NASDAQ:ADI) reported revenue of, $3.62 billion, growing 15% sequentially and 37% year-over-year. While we acknowledge the risk and potential of Analog Devices, Inc. (NASDAQ:ADI) 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 Analog Devices, Inc. (NASDAQ:ADI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Analog Devices, Inc. (NASDAQ:ADI) and shared the list of best battery technology stocks to buy for grid storage. 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.
