Artisan Mid Cap Fund Added Reddit (RDDT) Due to Varied Growth Drivers

Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equity markets continued their strength in the third quarter, ending the period with double-digit year-to-date gains. In the quarter, the fund’s Investor Class fund ARTMX returned 8.80%, Advisor Class fund APDMX posted a return of 8.80%, and Institutional Class fund APHMX returned 8.83%, compared to a 2.78% return for the Russell Midcap Growth Index. The significant outperformance was led by holdings in the health care sector. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Artisan Mid Cap Fund highlighted stocks such as Reddit, Inc. (NYSE:RDDT). Headquartered in San Francisco, California, Reddit, Inc. (NYSE:RDDT) is a digital community platform. The one-month return of Reddit, Inc. (NYSE:RDDT) was -26.31%, and its shares gained 154.14% of their value over the last 52 weeks. On October 14, 2025, Reddit, Inc. (NYSE:RDDT) stock closed at $196.35 per share, with a market capitalization of $36.748 billion.

Artisan Mid Cap Fund stated the following regarding Reddit, Inc. (NYSE:RDDT) in its third quarter 2025 investor letter:

"We also added to RBC Bearings, Reddit, Inc. (NYSE:RDDT) and Veracyte during the quarter. Reddit is a leading platform for community-driven social networking and online discussion, known for its highly engaged user base. Its interest-based model provides unique signals for ad targeting, while its vast repository of authentic, user-generated content positions it to benefit as generative AI reshapes the search landscape. With revenue up 78% year-over-year and an adjusted EBITDA margin of roughly 30%–33%,Reddit’s strong Q2 performance reflects solid execution. The company is still in the early stages of building out its advertising capabilities, so it has ample opportunity to further monetize its engagement. Additionally, it is in the process of renegotiating its data deals with the large language model providers, which we believe is another source of potential upside to the profit cycle."

Reddit, Inc. (NYSE:RDDT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 74 hedge fund portfolios held Reddit, Inc. (NYSE:RDDT) at the end of the second quarter, up from 72 in the previous quarter. In Q2 2025, Reddit, Inc.'s (NYSE:RDDT) revenue grew 78% year-over-year to $500 million. While we acknowledge the potential of Reddit, Inc. (NYSE:RDDT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Reddit, Inc. (NYSE:RDDT) and shared the list of stocks Jim Cramer commented on. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.