What Makes RBC Bearings (RBC) a Good Investment?

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 RBC Bearings Incorporated (NYSE:RBC). Headquartered in Oxford, Connecticut, RBC Bearings Incorporated (NYSE:RBC) manufactures engineered precision bearings and components. The one-month return of RBC Bearings Incorporated (NYSE:RBC) was 1.10%, and its shares gained 32.13% of their value over the last 52 weeks. On October 14, 2025, RBC Bearings Incorporated (NYSE:RBC) stock closed at $383.98 per share, with a market capitalization of $12.119 billion.

Artisan Mid Cap Fund stated the following regarding RBC Bearings Incorporated (NYSE:RBC) in its third quarter 2025 investor letter:

"We also added to RBC Bearings Incorporated (NYSE:RBC), Reddit and Veracyte during the quarter. RBC Bearings is a leading provider of specialty bearings, gearing and motion control products, with over 70% of revenue derived from sole- or primary-sourced components—underscoring its critical role in customer supply chains. Its strategy of producing ahead of demand supports strong delivery performance and quality, while proprietary design software enhances product engineering. We added to our position during the quarter, as we believe the company is well positioned to benefit from the production ramp-up of next generation aircraft, supported by long-term contracts with Boeing and Airbus, as well as steady aftermarket demand for maintenance and repair. The company recently issued a positive outlook, supported by a strong backlog and the successful integration of its VACCO acquisition, both of which signal continued growth potential."

RBC Bearings Incorporated (NYSE:RBC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 26 hedge fund portfolios held RBC Bearings Incorporated (NYSE:RBC) at the end of the second quarter, compared to 30 in the previous quarter. While we acknowledge the potential of RBC Bearings Incorporated (NYSE:RBC) 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 RBC Bearings Incorporated (NYSE:RBC) and shared Artisan Mid Cap Fund's views on the company in the previous quarter. 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.