Artisan Partners, an investment management company, released its fourth-quarter 2025 investor letter for “Artisan Small Cap Fund”. A copy of the letter can be downloaded here. The Fund seeks to invest in companies that possess franchise characteristics, with strong earnings trajectories, and are trading at a discount to the estimated private market value. Despite strong results in 2025, volatility was elevated, and sentiment shifted frequently, influenced by political developments in the US, evolving trade policy rhetoric, changing expectations for monetary policy, and ongoing geopolitical tensions. Against this backdrop, the Fund posted strong absolute returns in the fourth quarter, outperforming both the Russell 2000® Growth Index and the Russell 2000® Index. The portfolio delivered strong results in the quarter across all segments. In contrast, for the full year, the Fund generated strong results but trailed both the indexes. In Q4 2025, the market leadership shifted back to companies with durable profit cycles. Moving to 2026, the firm continues to focus on its proven technique of identifying profit cycles in franchise companies at reasonable valuations. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Artisan Small Cap Fund highlighted stocks like Lattice Semiconductor Corporation (NASDAQ:LSCC). Lattice Semiconductor Corporation (NASDAQ:LSCC) is a provider of low-power field programmable gate arrays that can be custom-configured by the user through software. On March 16, 2026, Lattice Semiconductor Corporation (NASDAQ:LSCC) stock closed at $89.92 per share. One-month return of Lattice Semiconductor Corporation (NASDAQ:LSCC) was -7.77%, and its shares gained 44.31% over the past 52 weeks. Lattice Semiconductor Corporation (NASDAQ:LSCC) has a market capitalization of $12.3 billion.
Artisan Small Cap Fund stated the following regarding Lattice Semiconductor Corporation (NASDAQ:LSCC) in its fourth quarter 2025 investor letter:
“Notable trims during the quarter were iRhythm, Flex and Lattice Semiconductor Corporation (NASDAQ:LSCC). Lattice is a fabless provider of low power field programmable gate arrays. Recent results and guidance were in line with expectations, and long term growth drivers remain intact, including expanding data center use cases, increasing AI edge computing adoption and a gradual recovery in industrial markets. We trimmed our CropSM position to maintain valuation discipline but remain invested, given attractive profit-cycle drivers and a capable new management team.”
