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Artisan Partners, an investment management company, released its first-quarter 2026 investor letter for the “Artisan Mid Cap Fund”. A copy of the letter is available to download here. In Q1 2026, the Artisan Mid Cap Fund reported negative absolute returns but slightly outperformed the Russell Midcap® Growth Index. The market favored lower volatility and income-oriented equities, with value outpacing growth significantly. Despite challenges for growth strategies, selective stock choices in sectors like industrials and healthcare provided strength, while consumer discretionary faced weaknesses. Mid- and small-cap indices showed resilience amid lagging large-cap growth stocks. The escalating conflict in Iran influenced market behavior, and AI-related investments continued to support capital spending and earnings. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Artisan Mid Cap Fund highlighted stocks like Coherent Corp (NYSE:COHR). Coherent Corp. (NYSE:COHR) manufactures and markets engineered materials, optoelectronic components and devices, as well as laser systems used across data center, industrial, and communications applications. On May 8, 2026, Coherent Corp. (NYSE:COHR) closed at $335.26 per share. One-month return of Coherent Corp. (NYSE:COHR) was 8.88%, and its shares gained 331.09% over the past 52 weeks. Coherent Corp. (NYSE:COHR) has a market capitalization of $65.59 billion.
Artisan Mid Cap Fund stated the following regarding Coherent Corp. (NYSE:COHR) in its Q1 2026 investor letter:
"Notable trims during the quarter were Coherent Corp. (NYSE:COHR), Wingstop and Astera Labs. Coherent is a leading supplier of lasers and photonics solutions used across data center, industrial and communications applications. Recent results exceeded expectations, with strong demand for high-speed optical components supporting AI-driven data center growth and margin expansion. Management also expressed increased confidence in its vertically integrated indium phosphide platform, which provides supply chain flexibility and a competitive advantage in a capacity-constrained industry. Given strong performance and a valuation nearing the upper end of our assessed range, we trimmed the position while maintaining conviction in the long-term opportunity."
Coherent Corp. (NYSE:COHR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 109 hedge fund portfolios held Coherent Corp. (NYSE:COHR) at the end of the fourth quarter, up from 78 in the previous quarter. In the third quarter of fiscal 2026, Coherent Corp. (NYSE:COHR) reported revenue of $1.8 billion, an increase of 7% sequentially, and 21% year-over-year, driven by growth in AI data center and communications demand. While we acknowledge the potential of Coherent Corp. (NYSE:COHR) 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 Coherent Corp. (NYSE:COHR) and shared the list of best photonics stocks to buy. In addition, please check out our hedge fund investor letters Q1 2026 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.