Here's Why Artisan Mid Cap Fund Exited Dexcom (DXCM)

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 DexCom, Inc. (NASDAQ:DXCM). DexCom, Inc. (NASDAQ:DXCM) is a medical device company that develops and commercializes continuous glucose monitoring (CGM) systems. The one-month return of DexCom, Inc. (NASDAQ:DXCM) was -13.68%, and its shares lost 5.95% of their value over the last 52 weeks. On October 15, 2025, DexCom, Inc. (NASDAQ:DXCM) stock closed at $65.41 per share, with a market capitalization of $25.651 billion.

Artisan Mid Cap Fund stated the following regarding DexCom, Inc. (NASDAQ:DXCM) in its third quarter 2025 investor letter:

"Along with Atlassian, we also ended our investment campaigns in DexCom, Inc. (NASDAQ:DXCM) and LPL Financial during the quarter. Dexcom is a leader in continuous glucose monitoring, with strong market penetration in Type 1diabetes and increasing traction in Type 2 diabetes (T2D). While we continue to view the T2D opportunity as significant, Dexcom has faced several operational challenges in recent years and continues to face strong competition from Abbott, whose cost effective FreeStyle Libre platform is well positioned in the T2D segment. As a result, we exited our position in favor of companies with higher conviction profit cycles and more compelling valuations."

DexCom, Inc. (NASDAQ:DXCM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 60 hedge fund portfolios held DexCom, Inc. (NASDAQ:DXCM) at the end of the second quarter, the same as in the previous quarter. For the second quarter of 2025, DexCom, Inc. (NASDAQ:DXCM) reported global revenue of $1.16 billion, compared to $1 billion in the second quarter of 2024, which represents a growth of 15% on both a reported and organic basis. While we acknowledge the potential of DexCom, Inc. (NASDAQ:DXCM) 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 DexCom, Inc. (NASDAQ:DXCM) and shared the list of best long term growth stocks to buy. 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.