Artisan Mid Cap Fund Trimmed Arista Networks (ANET) Post Liberation Day Rally

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 Arista Networks, Inc. (NYSE:ANET). Arista Networks, Inc. (NYSE:ANET) is a technology company that engages in the development and distribution of data-driven, client-to-cloud networking solutions. The one-month return of Arista Networks Inc (NYSE:ANET) was -2.24%, and its shares gained 40.78% of their value over the last 52 weeks. On October 15, 2025, Arista Networks Inc. (NYSE:ANET) stock closed at $143.38 per share, with a market capitalization of $180.209 billion.

Artisan Mid Cap Fund stated the following regarding Arista Networks Inc (NYSE:ANET) in its third quarter 2025 investor letter:

"Notable trims in the quarter included Arista Networks Inc (NYSE:ANET), Snowflake and Tyler Technologies. Arista Networks is a leader in cloud networking equipment for data centers. The company is gaining market share in AI cloud environments due to its scalable, cost-effective Ethernet solutions and its advanced software platform, Extensible Operating System, which delivers superior performance, programmability and reliability. Following a strong post-Liberation Day rally, we trimmed our position based on valuation considerations and a market capitalization that has grown well beyond our mid-cap mandate— demonstrating the success of a multiyear investment campaign."

Arista Networks Inc (NYSE:ANET) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 81 hedge fund portfolios held Arista Networks Inc (NYSE:ANET) at the end of the second quarter, up from 75 in the previous quarter. While we acknowledge the potential of Arista Networks Inc (NYSE:ANET) 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 Arista Networks Inc (NYSE:ANET) and shared the list of stocks Jim Cramer discussed. 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.