| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 8.9% | -2.72% | -2.72% |
Artisan Small Cap Fund delivered negative absolute returns but modestly outpaced the Russell 2000 Growth Index during Q1 2026, providing downside protection amid volatile market conditions. The quarter was dominated by geopolitical tensions in Iran that drove energy prices higher and shifted market leadership toward commodity-sensitive sectors where the fund typically finds fewer high-quality opportunities. Despite technology being the weakest performing sector, the fund's semiconductor holdings were the largest contributor to relative performance. The team initiated new positions in Onto Innovation, Baldwin Group and Freshpet while adding to existing holdings including Modine Manufacturing and Twist Bioscience. Key areas of conviction include AI infrastructure enablers, aerospace and defense benefiting from global rearmament, and health care companies with limited economic sensitivity. The fund exited Penumbra following its acquisition by Boston Scientific and trimmed positions that exceeded small-cap mandates. Management maintains confidence in company-specific profit cycles and expects volatility to create opportunities in high-quality franchises at attractive valuations.
Focus on high-quality franchises with durable profit cycles across power alleys of technology, industrials, consumer and health care, emphasizing bottom-up stock selection to capitalize on company-specific growth drivers while managing through macro volatility.
The manager maintains confidence in the portfolio's company-specific growth drivers despite elevated macroeconomic and policy uncertainty. They expect periods of heightened volatility to create opportunities in high-quality franchises trading at more attractive valuations and will look to take advantage of near-term trading dynamics to position the portfolio for attractive long-term returns.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 18 2026 | 2026 Q1 | BWIN, COMP, FLEX, FLS, FRPT, FTAI, GWRE, IRTC, MOD, MTSI, OLLI, ONTO, PEN, TTAN, TWST | AI, defense, energy, Geopolitical, growth, semiconductors, small cap, technology | - | Small-cap growth fund outperformed benchmark despite negative returns as geopolitical tensions favored commodity sectors over technology. Strong semiconductor stock selection offset energy underweight. Added AI infrastructure and defense positions while harvesting mature holdings. Management confident in company-specific profit cycles across technology, industrials and health care power alleys despite macro headwinds. |
| Jan 21 2026 | 2025 Q4 | BRKR, CLBT, COCO, FLEX, GH, GWRE, HXL, INSM, IRTC, ITGR, LASR, LSCC, MOD, MTSI, PCOR, PEN, PSN, SN, STVN, VSEC | AI, Biotechnology, defense, growth, healthcare, profit cycles, small cap, technology |
MTSI INSM COCO STVN PSN GWRE |
Artisan Small Cap Fund delivered strong Q4 outperformance as markets refocused on profit-driven fundamentals over risk-taking. The team maintains conviction in AI semiconductors, defense aerospace, and biotechnology themes while managing positions with valuation discipline. Portfolio positioning reflects deepening conviction across industrials and healthcare, with the profit cycle approach well-suited for the current environment favoring quality over speculation. |
| Oct 21 2025 | 2025 Q3 | 4350 JP, ALAB, ASND, CGNX, CWAN, IBP, INSM, LOAR, LSCC, MDGL, MOD, MTSI, SN, WAY, WING | AI, Biotech, Health Care, industrials, small caps |
LSCC MOD INSM TWST MTSI CGNX OLLI LSCC MOD INSM TWST MTSI CGNX OLLI |
|
| Jul 22 2025 | 2025 Q2 | BIRK, BWXT, CWAN, FLEX, FRSH, HALO, IOVA, IRTC, LSCC, MDGL, MTSI, SAIA, STVN, TTAN, WING | cash flow, fundamentals, Quality, small caps, Valuation discipline |
FLEX MTSI IRTC CWAN BWXT WING MDGL BIRK SVTA STVN GWRE |
|
| Mar 31 2025 | 2025 Q1 | ALAB, ARIS, ASCB, BFAM, BROS, FRSH, FTAI, GWRE, HALO, INTA, IRTC, KTOS, MOD, MTSI, MYRG, PEN, SG, SN, TWST, VCYT | AI, Biotechnology, Cloud, defense, growth, healthcare, small caps, Trade Policy | - | Artisan Small Cap outperformed in a challenging Q1, declining 10.14% versus the Russell 2000 Growth's 11.12% drop. Strong biotech and software holdings drove relative performance despite AI infrastructure selloff and tariff volatility. The team used market weakness to upgrade the portfolio, adding eight new positions while maintaining focus on resilient franchises with accelerating profit cycles trading at attractive valuations. |
| Dec 31 2024 | 2024 Q4 | ABMD.CO, ALAB, COCO, CROX, FLS, GTLB, HALO, INSM, ITGR, JBT, LSCC, MTSI, NOVT, ONTO, PSN, RGEN, SDHC, SN, STVN, VCYT, VSEC | AI, Biotechnology, energy, healthcare, semiconductors, small cap, technology | - | Artisan Small Cap Fund posted flat Q4 returns but strong full-year performance, driven by AI-benefiting semiconductor holdings like Astera Labs and improving software companies. Healthcare presents attractive opportunities with biotech profit acceleration expected. The team maintains conviction in their profit cycle approach while monitoring Trump administration policy impacts on small-cap positioning. |
| Sep 30 2024 | 2024 Q3 | ADS, APPF, ARGX, CIGI, ELF, GWRE, HL, IBP, INTA, IRTC, LSCC, MKTX, MOD, ONON, ONTO, SN, SPT, SPXC, TYL, VCYT | AI, growth, healthcare, interest rates, Profit Cycle, small caps, technology | - | Artisan Small Cap Fund outperformed in Q3 through strong security selection in healthcare and consumer discretionary. The team added positions in private markets, construction, and commercial real estate while exiting several holdings due to valuation discipline. They see opportunities in AI enablers, rate-sensitive businesses, and water sustainability solutions, maintaining focus on companies with accelerating profit cycles trading below private market value. |
| Jul 20 2024 | 2024 Q2 | AAPL, AMZN, BSY, ETSY, GOOGL, GWRE, INSM, INSP, IOVA, LSCC, META, MSFT, NVDA, ONTO, SMCI, TSLA, TWST, VITA, WING, WK | AI, Biotechnology, healthcare, semiconductors, small caps, software, technology | - | Artisan Small Cap underperformed in Q2 due to cyclical pressures on semiconductor holdings and software weakness from AI spending prioritization. The fund avoided major index winners Super Micro and MicroStrategy on governance and conviction concerns. Management remains patient with quality franchises facing temporary headwinds while selectively adding to compelling valuations with strong long-term conviction. |
| Apr 15 2024 | 2024 Q1 | ARGX, ASND, BL, CCCS, ELF, ETSY, FIVE, FND, FRPT, HALO, IPGP, LSCC, MPWR, MYRG, PCOR, SAIA, SHLS, SMAR, TREX, VMI, WING | AI, Biotechnology, Energy Transition, growth, healthcare, semiconductors, small cap, software | - | Artisan Small Cap underperformed in Q4 despite positive absolute returns, hurt by biotech R&D setbacks and semiconductor cyclical pressures. Small caps rallied on soft landing optimism and Fed dovishness. The team maintains conviction in franchise-quality companies benefiting from secular trends in AI, energy transition, and healthcare innovation, entering 2024 with attractive cross-sector opportunities. |
| Dec 31 2023 | 2023 Q4 | ARGX, ASND, CCCS, DUOL, ETSY, EXAS, FIVE, FND, HALO, IRTC, LSCC, MPWR, PCOR, RGEN, SAIA, SMAR, SWAV, TREX, VMI, WING | Biotechnology, Energy Transition, growth, healthcare, semiconductors, small cap, software, technology | - | Artisan Small Cap Fund posted positive Q4 returns but underperformed due to biotechnology R&D setbacks and semiconductor cyclical pressures. The team maintained conviction in core holdings, believing secular trends will drive recovery. New positions in energy transition and consumer themes reflect opportunistic approach. Despite macro uncertainty, attractive valuations and diverse sector opportunities position the portfolio well for 2024. |
| Sep 30 2023 | 2023 Q3 | ARGX, ASND, BL, BSY, CAVA, CCCS, ETSY, EXAS, FIVE, GLBE, GWRE, HALO, IRTC, LSCC, MTSI, PCOR, PZZA, RGEN, SAIA, SMAR, SPXC, STVN, SWAV, TREX, WCC, WING, WMS | Biotechnology, growth, healthcare, Medical Devices, semiconductors, small cap, software, technology | - | Small cap growth fund declined 7.97% in Q3 as Fed's higher-for-longer stance pressured valuations. Healthcare drove positive security selection through biotech pipeline progress, while medical devices faced GLP-1 headwinds. Manager added industrial and software positions while harvesting select holdings. Despite continued small cap underperformance, maintains conviction in franchise-focused approach with valuations at attractive levels relative to historical periods. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
AIAI-related investment continues to be a very strong trend supporting capital spending and corporate earnings. The fund sees opportunities among companies enabling AI infrastructure buildout including Modine Manufacturing, MACOM, Lattice Semiconductor, Onto Innovation, Flex, Semtech and SiTime. However, investor sentiment toward AI-related equities was uneven with periodic reassessments of valuation and return potential. |
Infrastructure Data Centers Semiconductors Valuation Capital Spending |
DefenseThe fund remains attracted to aerospace and defense, seeing a structural shift driven by modernization and global rearmament. Governments are responding to near-term conflicts, rebuilding inventories, upgrading capabilities and establishing higher baseline readiness levels. This supports sustained demand across mission-critical technologies including sensing, propulsion, communications and missile defense systems. |
Modernization Rearmament Government Spending Mission Critical Defense Electronics | |
SemiconductorsStock selection in information technology was the largest contributor to relative performance, driven primarily by semiconductor holdings. Leadership within AI has shifted toward infrastructure-oriented segments such as memory and optical components, which continue to benefit from sustained data center investment. The fund sees the beginning of a potential memory supercycle supporting accelerating growth. |
Memory Data Centers Optical Components Supercycle Infrastructure | |
EnergyEnergy stocks surged during the quarter, materially outperforming the broader market due to escalating conflict in Iran and subsequent retaliations that contributed to sharp rises in oil prices and disrupted supplies of industrial inputs. The fund's underweight position in energy was a headwind to performance as renewed commodity-driven inflation pressures increased market sensitivity. |
Oil Prices Geopolitical Commodity Inflation Iran Conflict Supply Disruption | |
| 2025 Q4 |
GrowthThe fund seeks long-term growth of capital by investing in growth-oriented common stocks using a quantitative formula that identifies the 50 stocks with highest one-year price appreciation meeting specific criteria. The Growth Strategy considers stock price appreciation as often associated with positive fundamentals such as strong growth or improving profitability. |
Growth Appreciation Momentum |
FinancialsThe fund is currently substantially invested in the Financials sector, with performance tied closely to developments in this industry. Companies in the Financials sector may be adversely affected by changes in the regulatory environment and interest rate fluctuations. |
Financials Banks Interest Rates | |
| 2025 Q1 |
AIThe introduction of China's DeepSeek AI model challenged market assumptions around AI infrastructure spending durability. This development raised questions about US leadership in AI and long-term returns on AI investments, particularly impacting data center capacity enablers in the portfolio. |
DeepSeek Infrastructure Data Centers Semiconductors Cloud |
BiotechnologyStrong performance from biotech holdings including Ascendis with its successful Yorvipath drug launch for hypoparathyroidism and Halozyme's ENHANZE technology platform. The team sees significant profit cycle drivers from new drug approvals and partnerships. |
Drug Launch Rare Diseases Partnerships FDA Approval Platform Technology | |
DefenseAdded Kratos Defense & Security Solutions, which specializes in advanced defense systems including drones and missile systems. The company received a $1.45 billion contract from the US Department of Defense for hypersonic weapons testing capabilities. |
Drones Hypersonics Defense Contracts National Security Weapons Systems | |
Trade PolicySignificant market volatility driven by aggressive tariff announcements affecting China and US allies. The team is monitoring supply chain risks and taking action on companies with tariff exposure, while noting policy volatility's impact on consumer and corporate confidence. |
Tariffs Supply Chain China Policy Volatility Trade War | |
WaterAdded Aris Water Solutions, which provides full-cycle water handling and recycling solutions in the Permian Basin. The company has built proprietary assets including collection pipelines and disposal wells, with potential for margin expansion and new use cases. |
Permian Basin Water Recycling Oil Production Infrastructure Environmental | |
CloudGuidewire's transition from licensed software to subscription-based cloud service is showing strong momentum with 12 new cloud deals signed in Q1. The team believes companies emerging from cloud transitions tend to see accelerating profit growth. |
SaaS Subscription Insurance Software Digital Transformation Recurring Revenue | |
| 2024 Q4 |
AIData centers are energy-intensive and with AI expansion, energy consumption is projected to grow exponentially. Portfolio companies like Astera Labs and MACOM are benefiting from growing AI datacenter spending. Cloud software franchises are making steady progress introducing AI functionality into their leading solution suites. |
Data Centers Semiconductors Cloud Energy |
SemiconductorsSemiconductor holdings delivered strong earnings results with positive forward outlooks. Astera Labs provides connectivity chips for data centers addressing bandwidth bottlenecks. MACOM benefits from AI datacenter spending. Lattice Semiconductor struggled due to cyclical pressures in industrial and telecom markets. |
Connectivity Data Centers Industrial Telecom Cyclical | |
BiotechnologyHealthcare has been largely left behind in this bull market and now presents some of the portfolio's most attractive valuation opportunities. Profit acceleration is anticipated for biotech holdings such as Ascendis and Insmed as each launches new medicines with blockbuster sales potential. |
Pharmaceuticals Rare Diseases Valuations Product Launches | |
Energy TransitionTechnology giants have committed to reducing carbon footprints and achieving net-zero emissions. Data centers require 24/7 power, creating conflict between accelerating power needs and carbon reduction commitments. Nuclear power sources and small modular reactors are being pursued as low-carbon energy solutions. |
Nuclear Data Centers Carbon Clean Energy | |
Natural GasHyperscalers may need to push their emissions goals to satisfy energy demand, likely having investment implications for the energy industry, particularly for companies exposed to natural gas, which may become the go-to fuel source where renewable energy infrastructure is not yet robust or reliable. |
Energy Power Generation Infrastructure Utilities | |
| 2024 Q3 |
AIThe team is focused on AI enablers that remain well positioned to benefit from reasonable industry investment levels because they are gaining market share based on superior technologies. They expect some volatility in AI-exposed stocks given relatively lofty expectations but are being disciplined on valuations. |
Data Centers Semiconductors Technology Infrastructure Growth |
HealthcareHealthcare was one of their power alleys that drove outperformance in Q3, benefiting from one of their better earnings seasons in recent history. The team sees opportunities in companies building annuity-like revenue streams through genetic testing and diagnostic accuracy improvements. |
Biotechnology Diagnostics Medical Devices Pharmaceuticals Innovation | |
WaterThe team has been researching water sustainability issues and PFAS contamination in drinking water. They see market opportunities for companies providing filtration systems, water treatment services, testing and monitoring equipment, and technical consulting services as regulations increase. |
Environmental Regulation Infrastructure Treatment Sustainability | |
Commercial Real EstateThe significant rise in interest rates decimated commercial real estate sales and leasing trends. However, with potential rate cuts, the team believes company-specific profit cycle drivers in this sector might begin to shine as interest rate headwinds abate. |
Interest Rates Property Brokerage Recovery Cyclical | |
| 2024 Q2 |
AIAI has received tremendous attention and driven extraordinary gains among companies directly exposed to the trend, such as those producing GPUs, networking equipment and other data center infrastructure. Corporate decision-makers have been prioritizing spending toward AI-related projects versus enterprise software solutions. |
GPUs Data Centers Enterprise Software Technology Nvidia |
Semiconductor CycleMost semiconductor companies have been impacted by customers destocking elevated inventories in recent quarters, but this seems to be nearing completion. Cyclical pressures continue to hurt companies like Lattice Semiconductor, though the manager expects a return to growth in the second half of 2024. |
Semiconductors Inventory Cyclical Lattice Recovery | |
BiotechnologyThe portfolio includes several biotech investments including Iovance Biotherapeutics focused on TIL cell therapies for cancer patients, and new position Insmed with treatments for serious pulmonary diseases. The manager sees significant unmet medical needs and multi-billion dollar sales potential. |
Cancer Pulmonary Cell Therapy Medical Devices Pipeline | |
CloudMultiple software investments have experienced weak results due to macroeconomic weakness pressuring customers and corporate prioritization of AI spending over enterprise software. The manager believes well-positioned cloud software franchises will leverage generative AI advances to enhance their platforms. |
SaaS Enterprise Software Subscription Generative AI Platforms | |
| 2024 Q1 |
BiotechnologyHealthcare biotechnology holdings faced R&D setbacks despite solid commercial progress. Argenx's Vyvgart failed two additional indications in Q4, Halozyme experienced underperformance related to Argenx setbacks, and Ascendis faced FDA manufacturing questions for TransCon PTH. The team maintains conviction in de-risked biotech assets with proven drugs and diversified pipelines. |
FDA Approval Drug Development Clinical Trials Rare Diseases Autoimmune |
Semiconductor CycleSemiconductor holdings experienced cyclical pressures with Lattice Semiconductor reporting disappointing results due to industrial market weakness in Asia and Europe. The team expects secular trends in data centers, AI, vehicle electrification, and industrial automation to drive solid growth over medium and long-term horizons despite near-term cyclical headwinds. |
FPGA Cyclical Downturn Market Share Industrial Automation Data Centers | |
Energy TransitionPortfolio includes exposure to renewable energy trends through MYR Group, a specialty electrical contractor positioned for grid modernization and the energy transition. The team sees multiyear growth cycles driven by reshoring, energy transition, and grid modernization creating opportunities in electrical infrastructure. |
Grid Modernization Electrical Infrastructure Renewable Energy Utility Spending | |
AISoftware companies are exploring generative AI tools to expand solution capabilities, with the opportunity for software vendors to integrate AI still in early innings. Portfolio companies like Smartsheet are introducing AI-driven features to drive enhanced customer productivity and capture value through increased revenue per user. |
Generative AI Software Integration Productivity Enhancement Revenue Per User | |
Small CapsSmall-cap stocks underperformed for nine of the past ten quarters but rallied strongly in Q4 as investor expectations shifted toward economic soft landing. The team believes small caps were at peak pessimism and sees attractive opportunities across the sector landscape entering 2024, with valuations at reasonable levels for growth equities. |
Underperformance Peak Pessimism Soft Landing Valuation Opportunity | |
| 2023 Q4 |
BiotechnologyHealthcare biotechnology holdings faced R&D setbacks despite solid commercial progress. Argenx's Vyvgart trials for two additional indications failed, Halozyme experienced underperformance related to Argenx setbacks, and Ascendis faced FDA manufacturing questions for TransCon PTH approval. |
Drug Development FDA Approval Clinical Trials Rare Diseases Autoimmune |
Semiconductor CycleSemiconductor holdings experienced cyclical pressures with Lattice Semiconductor reporting disappointing results due to industrial business weakness in Asia and Europe. However, secular trends in data centers, AI, vehicle electrification and industrial automation expected to drive medium-term growth. |
Cyclical Correction Data Centers Industrial Automation FPGA Market Share | |
SoftwareSoftware valuations were attractive relative to resilient subscription-based business models. Management teams focused on margin expansion following pandemic-era tech boom. Holdings continued gaining market share with margins starting to improve as companies refocused on profitability. |
SaaS Margin Expansion Market Share Subscription Models Profitability | |
Energy TransitionPortfolio positioned for renewable energy growth through MYR Group's electrical infrastructure contracting and exposure to grid modernization trends. Valmont benefits from accelerating renewable spending and grid hardening investments. |
Grid Modernization Renewable Infrastructure Electrical Contracting Grid Hardening Utility Spending | |
AIArtificial intelligence represents early-stage opportunity for software vendors to expand solution capabilities through integrated AI tools. Semiconductor holdings benefit from AI-driven secular trends in data centers and industrial applications. |
Generative AI Software Integration Data Center Demand Industrial Applications Early Stage | |
| 2023 Q3 |
GLP1Manager discusses the rapid growth of GLP-1 obesity drugs from Novo Nordisk and Eli Lilly, noting their impact on medical device stocks. While acknowledging public health benefits, believes the effects on cardiovascular disease incidence will take time and that opportunities for innovative franchises to gain share outweigh market expansion concerns. |
Obesity Diabetes Cardiovascular Medical Devices Novo Nordisk |
BiotechnologyPortfolio benefited from encouraging R&D pipeline news from several biotech holdings, particularly Argenx with successful CIDP trial results and FDA approval of subcutaneous injection version. Manager sees additional progress ahead with drugs being studied in multiple indications and growing drug pipeline beyond Vyvgart. |
R&D Pipeline Argenx Vyvgart Clinical Trials | |
AIManager notes generative AI breakthroughs and is impressed by how enterprise software businesses like Bentley, Smartsheet and Procore are integrating AI capabilities into their products to drive enhanced value propositions to customers. Also mentions AI as a way for construction companies to become more efficient. |
Generative AI Enterprise Software Value Proposition Efficiency | |
SemiconductorsSemiconductor industry was one of the worst performing areas as investors grew concerned about macroeconomic weakness. Lattice Semiconductor showed weakness in cyclical end markets like communications and computing, though industrial and automotive markets continued to expand sharply with market share gains. |
Cyclical End Markets Lattice Industrial Automotive | |
Medical DevicesMedical device stocks sold off on fears that rapid adoption of GLP-1 obesity medications will lead to declining incidence of comorbidities. Manager believes public health benefits are real but unlikely to materially restrain growth opportunities for holdings like Shockwave and iRhythm for many years to come. |
GLP-1 Comorbidities Shockwave iRhythm Cardiovascular | |
Small CapsSmall caps continued underperformance against large caps for a fourth consecutive quarter, which has only happened six other times since 1984. Manager notes Russell 2000 trailing P/E ratio relative to Russell 1000 is at levels last seen prior to dot-com bubble, but remains optimistic about long-term prospects despite frustration with prolonged underperformance. |
Underperformance Valuations Russell 2000 Dot-com Long-term |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 21, 2026 | Fund Letters | Craigh Cepukenas | PSN | Parsons Corporation | Industrials | Engineering & Construction | Bull | New York Stock Exchange | backlog, Contracts, cybersecurity, Defense, infrastructure | Login |
| Jan 21, 2026 | Fund Letters | Craigh Cepukenas | GWRE | Guidewire Software, Inc. | Information Technology | Application Software | Bull | New York Stock Exchange | Discipline, Insurance, Modernization, Software, valuation | Login |
| Jan 21, 2026 | Fund Letters | Craigh Cepukenas | MTSI | MACOM Technology Solutions Holdings, Inc. | Information Technology | Semiconductors | Neutral | NASDAQ | Cycles, Execution, Margins, semiconductors, valuation | Login |
| Jan 21, 2026 | Fund Letters | Craigh Cepukenas | INSM | Insmed Incorporated | Health Care | Biotechnology | Bull | NASDAQ | Adoption, biotechnology, Drug launch, pipeline, Pulmonary | Login |
| Jan 21, 2026 | Fund Letters | Craigh Cepukenas | COCO | The Vita Coco Company, Inc. | Consumer Staples | Beverages | Bull | NASDAQ | Beverages, Branding, Distribution, tariffs, Volume | Login |
| Jan 21, 2026 | Fund Letters | Craigh Cepukenas | STVN | Stevanato Group S.p.A. | Health Care | Health Care Supplies | Bull | New York Stock Exchange | biologics, Glp1, healthcare, Packaging, Reimbursement | Login |
| Oct 21, 2025 | Fund Letters | Craigh Cepukenas | LSCC | Lattice Semiconductor Corp. | Information Technology | Semiconductors | Bull | NASDAQ | AI data centers, Destocking, FPGAs, Inflection, Margins, robotics | Login |
| Oct 21, 2025 | Fund Letters | Craigh Cepukenas | MOD | Modine Manufacturing Co. | Consumer Discretionary | Electrical Components & Equipment | Bull | NYSE | Capacity, Cooling, data centers, hyperscale, Revenue upgrade, secular growth | Login |
| Oct 21, 2025 | Fund Letters | Craigh Cepukenas | LSCC | Lattice Semiconductor Corp. | Information Technology | Semiconductors | Bull | NASDAQ | AI data centers, Destocking, FPGAs, Inflection, Margins, robotics | Login |
| Oct 21, 2025 | Fund Letters | Craigh Cepukenas | INSM | Insmed Inc. | Health Care | Biotechnology | Bull | NASDAQ | Biotech, Bronchiectasis, Commercialization, operating leverage, pipeline, TAM | Login |
| Oct 21, 2025 | Fund Letters | Craigh Cepukenas | MOD | Modine Manufacturing Co. | Consumer Discretionary | Electrical Components & Equipment | Bull | NYSE | Capacity, Cooling, data centers, hyperscale, Revenue upgrade, secular growth | Login |
| Oct 21, 2025 | Fund Letters | Craigh Cepukenas | TWST | Twist Bioscience Corp. | Health Care | Life Sciences Tools & Services | Bull | NASDAQ | life sciences, Margins, Ngs, Partnerships, scale, Synthetic dna | Login |
| Oct 21, 2025 | Fund Letters | Craigh Cepukenas | INSM | Insmed Inc. | Health Care | Biotechnology | Bull | NASDAQ | Biotech, Bronchiectasis, Commercialization, operating leverage, pipeline, TAM | Login |
| Oct 21, 2025 | Fund Letters | Craigh Cepukenas | MTSI | MACOM Technology Solutions Holdings Inc. | Information Technology | Semiconductors | Bull | NASDAQ | Analog rf, design wins, Fab transition, Margins, Optical, recovery | Login |
| Oct 21, 2025 | Fund Letters | Craigh Cepukenas | TWST | Twist Bioscience Corp. | Health Care | Life Sciences Tools & Services | Bull | NASDAQ | life sciences, Margins, Ngs, Partnerships, scale, Synthetic dna | Login |
| Oct 21, 2025 | Fund Letters | Craigh Cepukenas | CGNX | Cognex Corp. | Information Technology | Electronic Equipment, Instruments & Components | Bull | NASDAQ | AI enablement, Automation, Cost Reduction, Cycle recovery, Machine vision, Sme adoption | Login |
| Oct 21, 2025 | Fund Letters | Craigh Cepukenas | MTSI | MACOM Technology Solutions Holdings Inc. | Information Technology | Semiconductors | Bull | NASDAQ | Analog rf, design wins, Fab transition, Margins, Optical, recovery | Login |
| Oct 21, 2025 | Fund Letters | Craigh Cepukenas | OLLI | Ollie’s Bargain Outlet Holdings Inc. | Consumer Discretionary | Broadline Retail | Bull | NASDAQ | disruption, Loyalty, Off-price retail, Sourcing, Store growth, Trade-down | Login |
| Oct 21, 2025 | Fund Letters | Craigh Cepukenas | CGNX | Cognex Corp. | Information Technology | Electronic Equipment, Instruments & Components | Bull | NASDAQ | AI enablement, Automation, Cost Reduction, Cycle recovery, Machine vision, Sme adoption | Login |
| Oct 21, 2025 | Fund Letters | Craigh Cepukenas | OLLI | Ollie’s Bargain Outlet Holdings Inc. | Consumer Discretionary | Broadline Retail | Bull | NASDAQ | disruption, Loyalty, Off-price retail, Sourcing, Store growth, Trade-down | Login |
| Jul 22, 2025 | Fund Letters | Craigh Cepukenas | FLEX | Flex Ltd. | Information Technology | Electronic Manufacturing Services | Bull | NASDAQ | Demand, diversification, manufacturing, Margin_expansion, Reshoring | Login |
| Jul 22, 2025 | Fund Letters | Craigh Cepukenas | MTSI | MACOM Technology Solutions Holdings Inc. | Information Technology | Semiconductors | Bull | NASDAQ | Compound_semiconductors, datacenter, Defense, Margins, Telecom | Login |
| Jul 22, 2025 | Fund Letters | Craigh Cepukenas | IRTC | iRhythm Technologies, Inc. | Health Care | Health Care Equipment | Bull | NASDAQ | Cardiology, diagnostics, Digital_health, growth, Reimbursement | Login |
| Jul 22, 2025 | Fund Letters | Craigh Cepukenas | CWAN | Clearwater Analytics Holdings Inc. | Information Technology | Financial Software | Bull | NASDAQ | Accounting, Data, Fintech, Integration, SaaS | Login |
| Jul 22, 2025 | Fund Letters | Craigh Cepukenas | BWXT | BWX Technologies, Inc. | Industrials | Aerospace & Defense | Bull | NYSE | backlog, Defense, Monopoly, Nuclear, Policy | Login |
| Jul 22, 2025 | Fund Letters | Craigh Cepukenas | WING | Wingstop Inc. | Consumer Discretionary | Restaurants | Bull | NASDAQ | Branding, Digital, Franchising, Restaurants, Unit_growth | Login |
| Jul 22, 2025 | Fund Letters | Craigh Cepukenas | MDGL | Madrigal Pharmaceuticals, Inc. | Health Care | Biotechnology | Bull | NASDAQ | Biotech, Efficacy, Fibrosis, Launch, MASH | Login |
| Jul 22, 2025 | Fund Letters | Craigh Cepukenas | BIRK | Birkenstock Holding plc | Consumer Discretionary | Footwear | Bull | NYSE | Brand, DTC, expansion, Footwear, Pricing | Login |
| Jul 22, 2025 | Fund Letters | Craigh Cepukenas | SVTA | ServiceTitan, Inc. | Other | Application Software | Bull | NYSE | ARR, expansion, Payments, Software, Vertical_saas | Login |
| Jul 22, 2025 | Fund Letters | Craigh Cepukenas | STVN | Stevanato Group S.p.A. | Health Care | Life Sciences Tools & Services | Bull | NYSE | biologics, Equipment, growth, Margins, Packaging | Login |
| Jul 22, 2025 | Fund Letters | Craigh Cepukenas | GWRE | Guidewire Software, Inc. | Information Technology | Application Software | Bull | NYSE | Cloud_transition, Fintech, Insurance, Margins, SaaS | Login |
| TICKER | COMMENTARY |
|---|---|
| MOD | Modine is a global leader in thermal management. During the quarter, management raised its growth outlook, supported by strong demand from hyperscale data center customers and its expanding portfolio of advanced cooling solutions. The company also announced the divestiture of its performance technologies business, repositioning itself as a pure-play climate solutions provider focused on data center and HVAC cooling. We believe this strategic shift enhances Modine's long-term growth profile and margin potential, and we added to the position during the quarter, reflecting increased conviction. |
| TWST | Twist Bioscience is a life sciences company that leverages a proprietary silicon-based DNA writing platform, with synthetic biology applications across drug discovery, diagnostics, agriculture and industrial materials. Recent results exceeded expectations, with upside in revenue and gross margin, as the company raised full-year revenue guidance and confirmed its adjusted EBITDA breakeven in fiscal Q4 2026. We think Twist is well positioned for continued market share gains and its products are key enablers of novel cancer diagnostics. The company has also been seeing increased demand from large pharmaceutical and AI-driven customers for sequence synthesis and data generation, which may support incremental growth as computational approaches gain broader adoption. We added to the position during the quarter. |
| MTSI | MACOM, a designer and manufacturer of high-performance semiconductors, continued to benefit from a favorable profit cycle across its data center, industrial, defense and telecom end markets underpinned by strength in long-haul communications and commercial satellite applications. The company reported results during the quarter that exceeded expectations and raised its forward outlook, driven by improved growth prospects in its data center business. We reduced our position as valuation became less attractive, but we still maintain a large Crop™ investment. |
| COMP | Compass is a residential real estate brokerage that leverages an integrated technology platform to enhance agent productivity and client engagement. Shares declined despite better-than-expected quarterly results and the earlier-than-anticipated close of its acquisition of Anywhere Real Estate. Investor concerns centered on potential AI disruption, rising interest rates and soft near-term revenue guidance, partly impacted by severe winter weather. We added to the position during the pullback, as we do not believe AI poses a material threat to Compass' agent-led model. Residential real estate transactions remain complex, relationship-driven and high value, and prior technological shifts have reinforced—rather than replaced—the role of experienced agents. We also view the impact of higher interest rates and weather-related factors as temporary. |
| TTAN | ServiceTitan is a leading vertical software provider serving trade businesses, with key end markets in plumbing, HVAC and electrical contracting. Shares underperformed as the broader software sector faced pressure, particularly due to shifting investor sentiment around AI-driven valuations—a trend that has persisted for several quarters. The stock price was further weighed down by fears over near-term profit execution ability amid softer HVAC demand, partly driven by a weak new housing environment. Despite these challenges, the company delivered results and guidance above expectations. While we believe in the franchise and the long-term profit cycle potential, we are weighing whether this stock deserves to be in our Crop™. |
| GWRE | Guidewire, a market leader in software for the property and casualty insurance industry, detracted for a second consecutive quarter amid software industry pressures. Despite concerns about AI's potential impact on traditional software as a service business models, the company delivered results and guidance above expectations. We trimmed the position on valuation in the second half of last year but began rebuilding the position during the quarter, supported by improved valuation and confidence in the company's long-term profit-cycle outlook. |
| ONTO | Onto is a leading provider of process control and inspection solutions used in advanced semiconductor wafer manufacturing. We reentered the position following a prior exit driven by concerns that KLA's growing scale and focus in advanced multi-layer inspection could disrupt the competitive landscape. While KLA has continued to invest in inspection solutions benefiting from AI-driven demand, we have not seen a material deterioration in Onto's competitive positioning. Meanwhile, our conviction has strengthened as Onto benefits from an early-stage recovery in its memory end market, driven by data center expansion and AI-related demand. We see this as the beginning of a potential memory supercycle, supporting accelerating growth, operating leverage and positive estimate revisions. |
| BWIN | Baldwin Group is a US insurance broker focused on the middle market, with differentiated exposure to embedded insurance and point-of-sale distribution channels. We initiated a Garden™ position following a broad selloff in insurance brokerage stocks as premium pricing conditions have normalized and investors expressed concerns that AI could potentially disrupt traditional, human-centric insurance brokerage models. Similar to our observations with Compass, we believe these AI-related risks are overstated. We were also encouraged by Baldwin's acquisition of CAC Group earlier this year, which meaningfully expanded its scale, specialty capabilities and distribution footprint. |
| FRPT | Freshpet is a leading US brand in refrigerated fresh pet food, supported by a differentiated in-store distribution network and consistent share gains within the premium pet food segment. We initiated a Garden™ position following renewed evidence of its durable competitive advantage, reinforced by unsuccessful attempts from larger competitors to enter the category, including General Mills' Blue Buffalo brand. With fresh food accounting for a small share of the overall pet food market, we see a long runway for growth. The company has also expanded online distribution through partnerships with Amazon and Walmart, which we expect will enhance convenience and broaden access to its products over time. |
| OLLI | Ollie's Bargain Outlet is a closeout driven discount retailer that delivers a 'treasure-hunt' shopping experience by offering branded merchandise at compelling values. We added Ollie's to the portfolio's Crop™ following an acceleration in comparable store sales, reinforcing our thesis of a long runway for square footage growth and a more favorable competitive environment. Weaker peers have been exiting the market, which has been enabling Ollie's to access a greater volume of attractive closeout deals and negotiate improved terms with vendors, given its scale. This dynamic may also support more favorable real estate opportunities through improved site availability and lease economics. |
| FLS | Flowserve is a leading provider of fluid motion and control products and services. We added to the Crop™ position as our confidence in the company's internal operational initiatives—focused on prioritizing higher value customers and products, improving pricing discipline and reducing complexity—increased. Maintaining this momentum should support continued revenue growth and margin expansion over the coming years. |
| PEN | Penumbra, a medical device company specializing in minimally invasive technologies to treat vascular conditions, was harvested following Boston Scientific's January announcement to acquire the company. We had been building the position throughout 2025 as adoption of Penumbra's core product portfolio expanded and clinical momentum improved across key indications. The acquisition validated our investment thesis and provided an attractive opportunity to take profits. |
| FTAI | FTAI owns and maintains commercial jet engines, with a focus on the maintenance, repair and exchange of CFM56 and V2500 engines. We began exiting the position as valuation increasingly reflected optimistic assumptions around the company's longer term opportunity to supply repurposed aircraft engines for data center power generation through FTAI Power. While we view this as a potentially interesting profit cycle driver over time, we expect the path to realization is unlikely to be linear and may involve periods of volatility along the way. |
| FLEX | Flex is a global manufacturing and supply chain solutions provider with growing exposure to high-margin AI and cloud data center infrastructure, particularly in power and cooling systems. We continued harvesting our position during the quarter, consistent with our Q4 trimming, as the company's market capitalization has grown beyond our small-cap mandate. We remain constructive on management's focus on optimizing the product mix toward faster growing, higher margin segments such as data centers and power. |
| IRTC | iRhythm provides Zio wearable cardiac monitoring devices that help physicians diagnose arrhythmias associated with elevated stroke risk. We further reduced our position, consistent with last quarter's trims, following the stock's strong 2025 performance, driven by company-specific profit-cycle tailwinds and market share gains after a competitor disruption, which are unlikely to recur in 2026. While we have taken profits and reduced the position size back into our Garden™, ahead of a potential lull in the 2026 profit cycle, we remain constructive on the long-term potential and are looking for the right opportunity to reverse course and potentially build the position again. |
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