Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund’s Investor Class fund ARTMX returned -7.40%, Advisor Class fund APDMX posted a return of -7.37%, and Institutional Class fund APHMX returned -7.35%, compared to a -7.12% return for the Russell Midcap Growth Index. US equities achieved solid Q4 gains, concluding a strong year. After a period of strong growth stock performance in 2023 and 2024, value stocks gained the lead in Q1 2025. In a risk-averse environment, investors shifted towards lower-volatility equities, especially in the utilities and consumer staples sectors, alongside those with higher dividend yields. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Artisan Mid Cap Fund highlighted stocks such as Arista Networks, Inc. (NYSE:ANET). Arista Networks, Inc. (NYSE:ANET) is a technology company that engages in the development and distribution of data-driven, client-to-cloud networking solutions. The one-month return of Arista Networks Inc (NYSE:ANET) was 32.58%, and its shares gained 29.66% of their value over the last 52 weeks. On May 05, 2025, Arista Networks Inc (NYSE:ANET) stock closed at $90.38 per share with a market capitalization of $113.484 billion.
Artisan Mid Cap Fund stated the following regarding Arista Networks Inc (NYSE:ANET) in its Q1 2025 investor letter:
“Along with Spotify, notable trims in the quarter included Arista Networks Inc (NYSE:ANET) and SAIA. Arista Networks is a market leader in cloud networking equipment used in data centers. Shares have experienced strong performance since the beginning of 2023 as its ethernet options capture market share in AI cloud environments. Many of the largest buyers in this space want to use Arista’s networking technology, given its meaningful advantage in graphic processing unit utilization rates versus InfiniBand, the out-of-the-box solution from NVIDIA. We believe Arista remains exceptionally well positioned. However, we have been trimming the position due to our valuation discipline.”
A technician in a server room managing a large-scale network of computers.
Arista Networks Inc (NYSE:ANET) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 78 hedge fund portfolios held Arista Networks Inc (NYSE:ANET) at the end of the fourth quarter which was 70 in the previous quarter. While we acknowledge the potential of Arista Networks Inc (NYSE:ANET) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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