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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Artemis US Select Fund 2026 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (Artemis US Select Fund)

Primary Source Intelligence • Q3 2026 Letter Analysis

Artemis US Select Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Artemis US Select Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD-3.3%

YTD+19.3%

Annualized+21.2%

Positioning StanceBULLISH

GeographyUS

Digest Analysis

Quick Take

"Resilient corporate earnings and underappreciated demand across frontier artificial intelligence infrastructure support a constructive equity stance. Capital is rotating into rebounding software platforms, networking components, and recovering life sciences providers."

Executive Summary

Artemis US Select Fund generated a net return of -3.3% net of fees in the third quarter of 2026, trailing the S&P 500 GBP Net Total Return benchmark gain of 2.2% and the IA North America sector average net return of 1.0%. Year-to-date, the fund returned 19.3% net of fees compared to 14.0% for the primary benchmark. Relative underperformance during the quarter was primarily driven by sharp drawdowns across AI infrastructure suppliers and an underweight stance in mega-cap technology champions that staged a late-quarter rally. Exposure was adjusted to establish a slight overweight in hyperscalers while moderating AI hardware weights. The macroeconomic environment was characterized by economic resilience, prompting a 25-basis-point interest rate increase from the Federal Reserve and pushing 10-year Treasury yields to 5.28%. Despite a 42% surge in Brent crude oil driven by US-Iran geopolitical friction, broader corporate earnings continued to expand without widespread refinancing headwinds. Technology market leadership rotated away from semiconductor infrastructure toward software and cybersecurity platforms previously deemed susceptible to artificial intelligence disruption. Portfolio turnover reflected active repositioning across the AI ecosystem and cyclical healthcare. The strategy established new long positions in Twilio and Lumentum, while scaling stakes in Meta and Microsoft. Capital was reallocated away from ServiceNow, MongoDB following executive turnover, and Micron via profit-taking. High-conviction holdings in Cloudflare, IQVIA Holdings, and Thermo Fisher Scientific contributed positively, whereas JB Hunt and Applied Materials detracted due to transient operational and sentiment headwinds.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

62%

CautiousHigh

Moderate (62%)

Portfolio actions reflect decisive rotation within tech and healthcare, featuring explicit exits in MongoDB and ServiceNow alongside additions to hyperscalers and Twilio. Conviction is moderated by active benchmarking constraints and diversified positioning across multiple subsectors.

Growth Outlook

75%

BearishBullish

Bullish (75%)

Management maintains an explicitly constructive stance on US equities, citing upward revisions in corporate profits and robust balance sheets capable of withstanding elevated yields. The manager characterizes negative infrastructure sentiment as largely unjustified.

Risk Appetite

65%

DefensiveAggressive

Balanced (65%)

Positioning reflects a healthy risk posture with an overweight in hyperscalers and exposure to high-beta software and optical networking. However, deliberate underweights in select mega-cap growth names indicate measured prudence.

Capital Deployment

60%

De-riskingDeploying

Net Neutral (60%)

Portfolio transactions show steady, balanced capital reallocation from closed positions such as ServiceNow and MongoDB directly into new longs like Twilio and Lumentum. Gross redeployment remains active without significant changes to cash reserves.

Forward Guidance

70%

CautiousExpansionary

Expansionary (70%)

The team demonstrates clear buy-side action bias by rotating capital toward optical networking and healthcare compounders while monitoring compute monetization. Capital reallocation targets specific sub-industries demonstrating inflecting demand.

Language Signal

68%

BearishBullish

Bullish (68%)

Constructive phraseology dominates market discussion, pointing to robust enterprise earnings revisions, healthy balance sheets, and long-term demand across frontier AI labs. Risk language is largely confined to transient cost surges and executive transitions.

Perceived Risk

48%

Low RiskElevated

Moderate Risk (48%)

Identified macro risks include geopolitical tensions in the Middle East driving energy spikes, interest rate tightening, and AI funding mechanics. However, management views corporate credit metrics and corporate balance sheets as thoroughly resilient.

Opportunity Density

65%

ScarceAbundant

Abundant (65%)

Substantial idea flow is highlighted across software recovery plays, edge computing, optical hardware, and biopharma R&D. While not viewing the broader market as universally mispriced, the manager identifies fertile stock-picking niches.

Time Horizon

70%

Short-TermLong-Term

Decade+ (70%)

Investment frameworks emphasize multi-year structural trends across the AI ecosystem and cyclical pharmaceutical research recoveries. Near-term price weakness in names like JB Hunt and Applied Materials is viewed through a multi-year lens.