Artisan Small Cap Fund posted modest losses but beat its benchmark as energy and cyclical sectors led market shifts.
Artisan Partners’ Small Cap Fund reported negative returns for Q1 2026 but outperformed the Russell 2000 Growth Index. Investor Class (ARTSX), Advisor Class (APDSX), and Institutional Class (APHSX) returned -2.72%, -2.68%, and -2.69%, respectively, compared to the index’s -2.81%.
US equities saw mixed performance, with major indices peaking in January before retreating due to geopolitical tensions, monetary policy shifts, and economic uncertainty. Energy stocks surged, while value outperformed growth as investors rotated into commodity-sensitive sectors. Mid- and small-cap stocks led large caps amid broader market leadership.
The fund’s focus on bottom-up stock selection provided downside protection, with portfolio companies maintaining solid earnings despite sector misalignment. Geopolitical risks, including the Iran conflict, influenced market behavior and sector rotations.