The fund initiated a position in BWIN during Q1 2026 as small-cap stocks outperformed large caps in a volatile quarter.
Artisan Partners disclosed in its Q1 2026 investor letter that its Small Cap Fund established a stake in The Baldwin Insurance Group (BWIN) during a market dip. The fund’s Investor Class (ARTSX), Advisor Class (APDSX), and Institutional Class (APHSX) posted returns of -2.72%, -2.68%, and -2.69%, respectively, outperforming the Russell 2000 Growth Index’s -2.81% decline.
US equities showed mixed performance in Q1 2026, with major indices reaching record highs in January before retreating due to geopolitical tensions, shifting monetary policy, and economic uncertainty. Energy stocks led gains, while value stocks outpaced growth as investors rotated from tech to commodity-sensitive sectors. Small- and mid-cap indices outperformed large caps, reflecting broader market leadership.
The fund’s strategy, focused on bottom-up stock selection, remained resilient despite negative absolute returns. Portfolio companies maintained solid earnings aligned with profit cycles, even as cyclical sectors dominated market trends.