What Makes RBC Bearings (RBC) an Investment Bet?

Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund’s Investor Class fund ARTMX returned 14.40%, Advisor Class fund APDMX posted a return of 14.45%, and Institutional Class fund APHMX returned 14.50%, compared to a 18.20% return for the Russell Midcap Growth Index. Global markets experienced a significant but volatile Q2, rotating from double-digit declines to double-digit gains. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Artisan Mid Cap Fund highlighted stocks such as RBC Bearings Incorporated (NYSE:RBC). Headquartered in Oxford, Connecticut, RBC Bearings Incorporated (NYSE:RBC) manufactures engineered precision bearings and components. The one-month return of RBC Bearings Incorporated (NYSE:RBC) was 6.72%, and its shares gained 45.30% of their value over the last 52 weeks. On July 24, 2025, RBC Bearings Incorporated (NYSE:RBC) stock closed at $404.38 per share, with a market capitalization of $12.763 billion.

Artisan Mid Cap Fund stated the following regarding RBC Bearings Incorporated (NYSE:RBC) in its second quarter 2025 investor letter:

“During the quarter, we initiated new GardenSM positions in RBC Bearings Incorporated (NYSE:RBC), BWX Technologies and Duolingo. RBC Bearings is a leader in specialty bearings, gearing and motion control products. More than 70%ofits revenue comes from sole, single or primary-sourced components, highlighting its critical role in customer supply chains. Its strategy of producing ahead of demand has enabled high on-time delivery and quality performance. RBC also leverages proprietary design software to engineer its products. We expect its commercial aerospace growth to accelerate as Boeing’s production recovers. In addition, upcoming contracts with Boeing and Airbus include price increases, which should cover the cumulative inflation RBC absorbed in recent years. We also believe its industrial end market will recover over time after facing cyclical pressures.”

Is RBC Bearings Incorporated (RBC) the Top Stock to Buy According to Durable Capital Partners?

A skilled machinist inspecting a precision bearing for a aerospace/defense application.

RBC Bearings Incorporated (NYSE:RBC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 30 hedge fund portfolios held RBC Bearings Incorporated (NYSE:RBC) at the end of the first quarter, compared to 22 in the previous quarter. In the fourth quarter of fiscal 2025, RBC Bearings Incorporated (NYSE:RBC) reported revenue of $436 million, a 7.3% increase over last year. While we acknowledge the risk and potential of RBC Bearings Incorporated (NYSE:RBC) 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 RBC Bearings Incorporated (NYSE:RBC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered RBC Bearings Incorporated (NYSE:RBC) and shared Conestoga Capital Advisors’ views on the company. 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.