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 IQVIA Holdings Inc. (NYSE:IQV) as a newly added position. IQVIA Holdings Inc. (NYSE:IQV) is a US-based provider of clinical research services, commercial insights, and healthcare intelligence to the life sciences and healthcare industries. On May 22, 2026, IQVIA Holdings Inc. (NYSE:IQV) closed at $167.90 per share. One-month return of IQVIA Holdings Inc. (NYSE:IQV) was 2.48%, and its shares gained 22.55% over the past 52 weeks. IQVIA Holdings Inc. (NYSE:IQV) has a market capitalization of $28.02 billion.
Artisan Value Fund stated the following regarding IQVIA Holdings Inc. (NYSE:IQV) in its Q1 2026 investor letter:
“We initiated four new positions in Q1, an above-average pace of activity. Typically, we add 1–2 new positions per quarter, averaging 1.7 per quarter over the past 5 years. Increased market volatility and greater dispersion in US equities created more opportunities to invest in companies that meet our three margin of safety criteria: attractive business economics, sound financial condition and compelling valuation. We also used the increased volatility to upgrade overall portfolio quality. Our three largest new positions were Amazon.com, Universal Music Group (UMG) and IQVIA Holdings.
IQVIA Holdings Inc. (NYSE:IQV) combines a leading global contract research organization (CRO) franchise with a unique, mission-critical health care data asset, creating a diversified model with both cyclical and recurring revenue streams. We believe its Technology & Analytics Solutions segment—anchored by proprietary prescription and patient data—provides a durable competitive moat, deeply embedded in pharma workflows, while the CRO business benefits from scale, long-term outsourcing trends and complex trial demand. From a business quality perspective, IQVIA has generated substantial free cash flow and maintained strong competitive positioning, supported by high customer retention and mission-critical offerings. While leverage is elevated, the company’s cash flow profile and liquidity provide financial flexibility consistent with the team’s emphasis on balance sheet resilience and downside protection. Recent share price weakness—down materially year to date—has been driven by concerns around AI disruption and softness in CRO demand, including trial cancellations and pharma reprioritization. However, these pressures appear cyclical and, in the case of AI, likely overstated given IQVIA’s proprietary data assets and domain expertise, which are difficult to replicate and position the company as a potential beneficiary of AI adoption rather than a casualty. At 15X forward earnings and a high-single-digit free cash flow yield, the stock reflects low expectations despite resilient fundamentals. Consistent with the team’s process, this dislocation, driven by near-term uncertainty, presents a compelling entry point, particularly if the underlying business proves more resilient than current expectations imply.”
IQVIA Holdings Inc. (NYSE:IQV) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 69 hedge fund portfolios held IQVIA Holdings Inc. (NYSE:IQV) at the end of the fourth quarter, up from 61 in the previous quarter. While we acknowledge the risk and potential of IQVIA Holdings Inc. (NYSE:IQV) 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 IQVIA Holdings Inc. (NYSE:IQV) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered IQVIA Holdings Inc. (NYSE:IQV) and shared Broyhill Asset Management’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.
