| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 17.8% | -0.5% | 19.9% |
The Artisan Focus Fund delivered 19.89% returns in 2025, outperforming the S&P 500 by 2.01%, driven by exceptional earnings estimate revisions of +8.0% versus -2.0% for the benchmark. The aerospace normalization theme was the largest contributor, with General Electric, Rolls-Royce and Howmet benefiting from fundamental strength. The portfolio maintains strong correlation to fundamentals rather than market momentum, with lower correlation to the Magnificent 7 than broader indices. Looking ahead, the team believes the next three years offer the richest opportunity set since inception, driven by AI economics creating productivity inflections across sectors. The portfolio is positioned for continued value creation with 500bps projected ROIC expansion through 2028 and 50% excess EPS growth versus the S&P 500. Key themes include aerospace normalization, data monetization, de-globalization, and digital transformation. The fund targets companies with expanding margins, superior economics, and structural growth drivers while maintaining disciplined valuation approach.
The fund focuses on companies positioned to benefit from structural themes including AI productivity gains, aerospace normalization, data monetization, and energy transition, targeting businesses with expanding ROIC and superior earnings growth potential.
The team believes the next 3 years offers the richest opportunity set since inception, driven by AI economics creating abundant inflection points across sectors. They expect continued strong execution with portfolio positioned for value creation through ROIC expansion and earnings growth differentiation.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 27 2026 | 2025 Q4 | AAPL, ADI, AXON, CAT, COF, GE, GS, HWM, ISRG, JPM, LLY, NDAQ, NVDA, ROK, RYCEY, SHOP, SMNEY, TSM, WELL, WFC | aerospace, AI, Capital markets, Data centers, energy, productivity, ROIC, semiconductors |
CAT ADI |
AI impacts on productivity should create abundant inflection points across nearly all S&P sectors in profitability and ROIC. When amortizing AI capex over the system… |
| Oct 20 2025 | 2025 Q3 | - | aerospace, Artificial Intelligence, digital transformation, Energy Infrastructure, Industrial Automation |
MSFT NVDA GE RR TSM MSFT NVDA GE RR TSM |
The Artisan Focus Fund under Antero Peak highlights AI infrastructure, power demand, and aerospace as structural growth drivers. Key holdings include NVIDIA, Siemens Energy, and… |
| Aug 27 2025 | 2025 Q2 | AAPL, AMZN, AVGO, CRM, META, NVDA | Compounding, Discipline, durability, Intrinsic Value, Quality | - | The letter stresses disciplined ownership of high-quality, durable businesses amid volatile sentiment and shifting trade policy. Management highlights patience, selectivity, and focusing on intrinsic value… |
| Jun 30 2025 | 2025 Q1 | - | - | - | - |
| Dec 31 2024 | 2024 Q4 | - | - | - | - |
| Sep 30 2024 | 2024 Q3 | - | - | - | - |
| Jun 30 2024 | 2024 Q2 | - | - | - | - |
| Mar 31 2024 | 2024 Q1 | - | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AerospacePortfolio maintains significant conviction in Aerospace theme alongside Electrification within Industrials sector exposure. Rocket Lab operates as end-to-end space company developing rocket launch and control systems, with strong earnings results and growing backlog during the quarter. |
Space Defense Launch Services Satellites Rocket Lab |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation | |
Capital MarketsExchanges operate as essential high-margin toll roads for the economy with immense operating leverage. They benefit from trading volume flowing directly to profits with minimal extra cost and have natural inflation hedging through transaction values. |
Exchanges Nasdaq CBOE Trading Fees Market Data | |
Data CentersSupply constraints curtailing infrastructure buildout rate, but compute capacity is being used immediately upon coming online. This differs from dot-com bubble when dark fiber was installed ahead of need. Labor, power and land shortages creating bottlenecks. |
Supply Constraints Utilization Bottlenecks Infrastructure | |
Energy TransitionThe portfolio maintains significant exposure to electrification themes through companies like Bloom Energy, which provides clean, reliable power solutions for AI data centers. The energy transition represents a structural opportunity as companies race to build power infrastructure to support growing electricity demands from AI workloads. |
Electrification Clean Energy Power Generation Fuel Cells Grid Infrastructure | |
SemiconductorsRGA initiated a position in Lattice Semiconductor, viewing it as an under-appreciated AI winner with immediate gains and longer-term optionality. Lattice's focus on efficiency and advantages in low-power, small footprint FPGAs position it favorably for AI servers, particularly as the only Post-Quantum Cryptography secure chips on the market. |
FPGAs Security Efficiency AI Infrastructure Programmable | |
| 2025 Q3 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
EnergyBHE operates regulated utilities serving 5.4 million customers and natural gas pipelines. The business faces significant investment needs driven by AI computing demand and wildfire risk mitigation, particularly in the Western U.S. |
Regulated Utilities Natural Gas Renewable Energy Grid Infrastructure | |
IndustrialsThe fund increased exposure to high-quality industrial businesses with potential for cyclical upturn. Added Quanta Services for AI data center build-out, Hubbell for electrical grid upgrades, Old Dominion for freight cycle recovery, and Waste Connections for secondary market focus. |
Infrastructure Automation Transportation Electrical Equipment Waste Management | |
| 2025 Q2 |
QualityThe company emphasizes investing in businesses with excellent economics, durable competitive advantages, and high-integrity management. This quality focus is evident in concentrated equity holdings and operating business acquisitions. |
Durable Advantages Management Quality Economic Moats Competitive Position |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 20, 2025 | Fund Letters | Christopher Smith | MSFT | Microsoft Corp. | Information Technology | System Software | Bull | NASDAQ | AI, cloud, Digital transformation, Enterprise transformation, recurring revenue, ROIC | Login |
| Oct 20, 2025 | Fund Letters | Christopher Smith | NVDA | NVIDIA Corp. | Information Technology | Semiconductors | Bull | NASDAQ | AI, capital intensity, data centers, earnings growth, GPUs, hyperscale, semiconductors | Login |
| Oct 20, 2025 | Fund Letters | Christopher Smith | GE | General Electric Co. | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace, aftermarket, Cyclicality, Engines, Margins, ROIC, travel demand | Login |
| Oct 20, 2025 | Fund Letters | Christopher Smith | RR | Rolls-Royce Holdings plc | Industrials | Aerospace & Defense | Bull | NYSE | — | Login |
| Oct 20, 2025 | Fund Letters | Christopher Smith | TSM | Taiwan Semiconductor Manufacturing Co. Ltd. | Information Technology | Semiconductors | Bull | NYSE | AI, Capacity utilization, EPS growth, Foundry, Pricing power, semiconductors | Login |
| Oct 20, 2025 | Fund Letters | Christopher Smith | MSFT | Microsoft Corp. | Information Technology | System Software | Bull | NASDAQ | AI, cloud, Digital transformation, Enterprise transformation, recurring revenue, ROIC | Login |
| Oct 20, 2025 | Fund Letters | Christopher Smith | NVDA | NVIDIA Corp. | Information Technology | Semiconductors | Bull | NASDAQ | AI, capital intensity, data centers, earnings growth, GPUs, hyperscale, semiconductors | Login |
| Oct 20, 2025 | Fund Letters | Christopher Smith | GE | General Electric Co. | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace, aftermarket, Cyclicality, Engines, Margins, ROIC, travel demand | Login |
| Oct 20, 2025 | Fund Letters | Christopher Smith | RR | Rolls-Royce Holdings plc | Industrials | Aerospace & Defense | Bull | NYSE | — | Login |
| Oct 20, 2025 | Fund Letters | Christopher Smith | TSM | Taiwan Semiconductor Manufacturing Co. Ltd. | Information Technology | Semiconductors | Bull | NYSE | AI, Capacity utilization, EPS growth, Foundry, Pricing power, semiconductors | Login |
| Jan 27, 2026 | Fund Letters | Christopher Smith | CAT | Caterpillar Inc. | Industrials | Construction Machinery & Heavy Transportation Equipment | Bull | New York Stock Exchange | Cycle, data centers, Deglobalization, infrastructure, machinery | Login |
| Jan 27, 2026 | Fund Letters | Christopher Smith | ADI | Analog Devices Inc. | Information Technology | Semiconductors | Bull | NASDAQ | AI, Analog, Automation, Pricing power, semiconductors | Login |
| TICKER | COMMENTARY |
|---|---|
| AAPL | Apple Inc. represents 1.6% of company owned with cost basis of $6,255 million and market value of $61,962 million, providing $280 million in 2025 dividends. |
| ADI | Best economics in analog: 70%+ gross margins, 45–50% EBIT target, rising ROIC. Premium positioning: 4X average selling prices, mission-critical sockets, extreme switching costs. Hybrid manufacturing edge: ~5% capex vs. peers 15%+ → superior free cash flow + resilience. Maxim synergies: power + systems mix shift, margin accelerator. Secular and cyclical tailwinds: industrial automation, EV electrification (wireless battery management system), AI data center power & test, 100% ADI alpha hit rate~39% annualized returns in past upcycles and we believe 2Q25 marked the restart; pricing + margin inflection underway. |
| AXON | Axon Enterprise Inc. develops and produces Taser weapons and body cameras for law enforcement agencies. Investors have grown accustomed to big beats and raises from Axon. A slight beat to third-quarter projections and mixed fourth-quarter guidance triggered a -21% decline. We added to the position due to solid customer growth and retention. There are also numerous growth drivers for their business including Taser 10, bodycam 4, and their artificial intelligence software bundle. |
| CAT | Construction + Mining at low mid-cycle levels; dealer destock largely complete. Non-Residential + manufacturing starts inflecting (manufacturing starts 5X trailing 12-month average in June). Pricing Re-Accelerating, inventories bottoming → classic machinery trough signals. De-Globalization + OBBB tailwinds (bonus depreciation = ~700bps spend tailwind). Five Prior Cycles = ~150% avg alpha vs. S&P 500® Index from trough to peak. |
| COF | We added to Capital One Financial Corporation, which was a core new addition in the prior quarter. |
| GE | For insight into the real economy operating beneath this AI and data center boom, we must look elsewhere within the S&P 500, including bellwethers like General Electric |
| GS | Energy (MEG takeover, CNQ), Precious metals (a basket of producers, primarily silver) and Financials (Goldman Sachs/Fairfax Financial) all provided solid contributions within the quarter. With the exception of MEG, all remain large holdings, and in some cases, we have further added to our positions. |
| HWM | RTX and Howmet extended gains as commercial aerospace demand remained strong and defense spending stayed elevated amid ongoing geopolitical uncertainty, supporting backlog strength and long-cycle earnings durability |
| ISRG | ISRG shares appreciated in the fourth quarter after the company delivered strong Q3 results highlighting continued procedure growth and accelerating system placements. Procedure volumes rose in the mid-teens globally, with notable strength in general surgery and urology, while recurring instrument and accessory revenue grew faster than expectations. Management also reported that the early rollout of its next-generation robotic platform was tracking ahead of schedule, with utilization metrics trending positively across beta sites. |
| JPM | JPMorgan (JPM) has identified 42 AI-related stocks in the S&P 500, which today represent 45% of the index's market cap. They estimate that these stocks have accounted for 78% of S&P 500 returns, 66% of earnings growth, and 71% of capital spending growth since ChatGPT launched in November 2022. As it relates to the impact on the U.S. economy, JPM estimates tech sector capital spending contributed 40%-45% of U.S. GDP growth through the first 9 months of the year, up from less than 5% during the same period in 2023. |
| LLY | Eli Lilly shares were a top performer in 4Q25 after delivering strong Q3 2025 earnings in October. Revenue rose 54% year-over-year to $17.6 billion, and adjusted EPS of $7.02 beat consensus of $6.02. Growth was driven by its GLP-1 franchises, Mounjaro and Zepbound, where sales more than doubled year-over-year, alongside strength in other therapeutic areas. Management raised full-year guidance for both revenue and earnings, reinforcing investor confidence in the company's growth outlook. |
| NDAQ | The outperformance came from: Nasdaq. The top contributors to this outperformance came from Nasdaq |
| NVDA | AI bellwether NVIDIA's very strong set of earnings in late November helped the AI theme re-assert its dominance when investors breathed a sigh of relief following the results. |
| ROK | Rockwell Automation is the pure-play bet on factory digitization. Its moat is sticky, mission-critical automation software and hardware that enable manufacturers to boost efficiency, safety, and uptime. Secular tailwinds—reshoring, labor shortages, electrification, and physical AI-driven industrial automation—give it years of demand runway. With recurring revenue growth, strong pricing power, and capital-light margins, ROK is a high-quality compounder in a world where industrial efficiency is gold. |
| SHOP | Shopify Inc. is a cloud-based software provider for multi-channel commerce. Shares rose 8.3% in the fourth quarter, finishing 2025 up 51.1% on strong financial results that outperformed Street expectations. The company is demonstrating rapid growth at scale with gross merchandise value (GMV) and revenues each growing over 30% year-on-year. |
| TSM | TSMC was a top contributor during the quarter, driven by robust demand for advanced semiconductor manufacturing and improved gross margins as AI continues to grow strong and the non-AI segment showed signs of recovery. Management raised its revenue growth guidance to the mid-30% range, and given continued strength in demand, AI-related growth targets are expected to move above the current mid-40% level. |
| WELL | During the height of COVID, Welltower and other healthcare real estate stocks were battered. In the span of two years Welltower's earnings dropped by a third as occupancy in its properties plummeted. Its valuation fell in sympathy and to our eye went too far. Welltower was a small position in the fund as the pandemic hit its peak, and we began adding to our position. When the pandemic receded Welltower began to show tremendous growth as it rebuilt occupancy, albeit off a very low base. Nevertheless, investors were cheered and the company began to experience multiple expansion. As its cost of equity dropped, the capital markets opened and Welltower began raising capital to purchase senior housing assets that, for all practical purposes, no one else wanted to own. That fueled even better earnings growth above and beyond what it was getting from occupancy growth. A virtuous cycle began where Welltower parlayed positive spread investing to become one of the biggest public real estate companies in existence. It is now the single largest company in our benchmark at almost 9% of its total market capitalization. This compares to 2022 when it was the fifth largest in the benchmark and only 4% of its total market capitalization. But like all good things, there are limits. Welltower has long been and still is the most expensive stock in our universe by a considerable margin, and that's after accounting for robust growth expectations. Unfortunately for us, we had completely exited the stock by January 2025. |
| WFC | and money center banks Citigroup and Wells Fargo, all following strong performance |
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