Artisan Mid Cap Fund Sold Snowflake (SNOW) Due to Elevated Valuation

Artisan Partners, an investment management company, released its fourth-quarter 2025 investor letter for “Artisan Mid Cap Fund”.  A copy of the letter can be downloaded here. The Fund seeks to invest in companies that possess franchise characteristics, with strong earnings trajectories, and are trading at a discount to the estimated private market value. US equities ended a record year with robust fourth-quarter gains. The Fund’s Investor Class, ARTMX, delivered -0.44%, the Advisor Class, APDMX, delivered -0.37%, and the Institutional Class, APHMX, delivered -0.35% in the fourth quarter compared to -3.70% for the Russell Midcap® Growth Index. Continued strength in information technology (IT) and health care contributed to the performance during the quarter. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Artisan Mid Cap Fund highlighted stocks like Snowflake Inc. (NYSE:SNOW). Based in Bozeman, Montana, Snowflake Inc. (NYSE:SNOW) is a cloud-based data platform company. On February 20, 2026, Snowflake Inc. (NYSE:SNOW) stock closed at $172.50 per share. One-month return of Snowflake Inc. (NYSE:SNOW) was -18.35%, and its shares gained 0.92% over the past 52 weeks. Snowflake Inc. (NYSE:SNOW) has a market capitalization of $59.029 billion.

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

"Along with Veeva, we also ended our investment campaigns in Snowflake Inc. (NYSE:SNOW) and Ferguson during the quarter. Snowflake is a leading player in data infrastructure, enabling organizations to unlock greater value from their data estates. We exited the position following a strong run given the elevated valuation paired with the potential for decelerating revenue growth due to uneven consumption trends. Furthermore, Snowflake is most commonly used by customers for structured data; there is the potential for large language models to allow enterprises to effectively unlock the benefits of unstructured data, bringing Snowflake's value proposition more into question. This is a question we continue to monitor and learn about."

Snowflake Inc. (NYSE:SNOW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 88 hedge fund portfolios held Snowflake Inc. (NYSE:SNOW) at the end of the fourth quarter, compared to 102 in the previous quarter. 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 a list of AI stocks that will go to the moon. In Q4 2025, Jacob Funds initiated a position in Snowflake Inc. (NYSE:SNOW) due to its unique and dominant position in the data warehousing market. In addition, please check out our hedge fund investor letters Q4 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.