Here's Why Artisan Mid Cap Fund Sold Its Position in Veeva Systems (VEEV)

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 Veeva Systems Inc. (NYSE:VEEV). Veeva Systems Inc. (NYSE:VEEV) is a technology company that provides a cloud-based software platform for the life sciences industry. On February 20, 2026, Veeva Systems Inc. (NYSE:VEEV) stock closed at $180.31 per share. One-month return of Veeva Systems Inc. (NYSE:VEEV) was -19.57%, and its shares lost 20.26% over the past 52 weeks. Veeva Systems Inc. (NYSE:VEEV) has a market capitalization of $29.64 billion.

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

"Our biggest detractors in Q4 were ROBLOX, Veeva Systems Inc. (NYSE:VEEV) and Spotify. Veeva Systems has a leading customer relationship management (CRM) platform for pharmaceutical sales and marketing organizations and has extended its franchise into pharmaceutical R&D through additional software modules. Despite reporting solid results with recurring revenue up 18%, driven by the adoption of its R&D and commercial cloud solutions, we exited the position due to rising competitive and AI-driven risks."

Veeva Systems Inc. (NYSE:VEEV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 74 hedge fund portfolios held Veeva Systems Inc. (NYSE:VEEV) at the end of the fourth quarter, compared to 57 in the previous quarter. While we acknowledge the potential of Veeva Systems Inc. (NYSE:VEEV) 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 Veeva Systems Inc. (NYSE:VEEV) and shared Conestoga Capital Advisors' views on the company. 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.