Artisan Mid Cap Fund Trimmed Snowflake (SNOW) Following a Strong Performance And An Elevated Valuation

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 Snowflake Inc. (NYSE:SNOW). Snowflake Inc. (NYSE:SNOW) offers a cloud-based data platform to support various organizations. The one-month return of Snowflake Inc. (NYSE:SNOW) was 8.44%, and its shares gained 102.35% of their value over the last 52 weeks. On October 15, 2025, Snowflake Inc. (NYSE:SNOW) stock closed at $240.86 per share, with a market capitalization of $81.603 billion.

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

"Notable trims in the quarter included Arista Networks, Snowflake and Tyler Technologies. Snowflake Inc. (NYSE:SNOW) is a leading player in data infrastructure, enabling organizations to unlock greater value from their data estates through unified access, scalable analytics and AI-driven insights across cloud environments. Following a strong performance and an elevated valuation, we trimmed our position—reflecting a degree of caution as increasingly powerful and cost-effective large language models raise questions about the long-term evolution of traditional data warehouse architectures and the role of centralized data platforms."

Snowflake Inc. (NYSE:SNOW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 100 hedge fund portfolios held Snowflake Inc. (NYSE:SNOW) at the end of the second quarter, which was 94 in the previous quarter. In the first quarter of fiscal 2026, Snowflake Inc.’s (NYSE:SNOW) product revenue increased 26% year-over-year to $997 million. While we acknowledge the potential of Snowflake Inc. (NYSE:SNOW) 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 Snowflake Inc. (NYSE:SNOW) and shared the list of AI stocks on the market’s radar. 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.