Artisan Partners, an investment management company, recently released its fourth-quarter 2025 investor letter for the Artisan Mid Cap Fund. The Fund focuses on investing in companies with strong franchise characteristics, robust earnings trajectories, and trading at a discount to their estimated private market value. Despite a record year for US equities with strong fourth-quarter gains, the Fund’s performance was mixed. The Investor Class delivered -0.44%, the Advisor Class delivered -0.37%, and the Institutional Class delivered -0.35% compared to -3.70% for the Russell Midcap® Growth Index. The Fund attributed its performance to continued strength in information technology and health care sectors.
One of the highlighted stocks in the investor letter was MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI). MACOM is a technology company that provides analog semiconductor solutions across various spectrums. The stock closed at $245.53 per share on February 23, 2026, with a one-month return of 12.17% and a 105.86% increase over the past twelve months. The company has a market capitalization of $18.418 billion.
In the investor letter, Artisan Mid Cap Fund mentioned that they trimmed their position in MACOM along with other companies like Coherent and iRhythm. Despite delivering in-line results and issuing a strong Q1 outlook, MACOM’s stock rose due to sequential gross margin improvement and robust demand across key markets. The company’s strategy of expanding margins through differentiated compound semiconductor solutions and product cycles was highlighted as a positive factor.
Although MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is not among the 30 most popular stocks among hedge funds, the Fund sees potential in the company as an investment. However, they believe that certain AI stocks offer greater upside potential with less downside risk. For investors seeking undervalued AI stocks that could benefit from current market trends, the Fund recommends exploring their report on the best short-term AI stock.
Overall, Artisan Partners’ fourth-quarter 2025 investor letter provides insights into their investment strategy and key holdings like MACOM Technology Solutions Holdings, Inc. The Fund’s focus on companies with strong fundamentals and growth potential underscores their commitment to delivering value for investors in a dynamic market environment.
