Artisan Small Cap Fund Picked Ollie's Bargain Outlet (OLLI) Amid Multiple Catalysts

Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equities continue to rally in the third quarter, the period with double-digit YTD gains. Major US indices like Russell 1000®, Russell Midcap®, and Russell 2000® reached record highs in the period. In the quarter, the fund’s Investor Class fund ARTSX returned 8.69%, Advisor Class fund APDSX posted a return of 8.75%, and Institutional Class fund APHSX returned 8.73%, compared to a return of 12.19% for the Russell 2000 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its third-quarter 2025 investor letter, Artisan Small Cap Fund highlighted stocks such as Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI). Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) is a US-based retailer of closeout merchandise and excess inventory. The one-month return of Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) was 1.24%, and its shares gained 37.46% of their value over the last 52 weeks. On November 17, 2025, Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) stock closed at $122.89 per share, with a market capitalization of $7.538 billion.

Artisan Small Cap Fund stated the following regarding Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) in its third quarter 2025 investor letter:

"Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) is a discount retailer offering a treasure-hunt shopping experience with brand-name merchandise at deeply discounted prices. Like Cognex, Ollie’s is a company we have owned before. We believe its differentiated closeout retail model benefits from several structural tailwinds, including an Amazon-resistant format, increased access to prime retail locations due to competitor store closures (e.g., Big Lots) and strong vendor relationships. Favorable cyclical trends are also in place, such as consumer trade down behavior, ongoing disruption in the retail landscape and tariff related volatility. These dynamics are driving strong availability of closeout inventory and accelerating growth in its loyalty program, Ollie’s Army, which now accounts for roughly 80% of total sales. Additionally, a relatively new management team is implementing improved systems and processes to further professionalize operations and support long-term expansion."

Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) at the end of the second quarter, which was 25 in the previous quarter. While we acknowledge the potential of Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) 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 Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) 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.