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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 Waters Corporation (NYSE:WAT). Waters Corporation (NYSE:WAT) is a US-based life science and diagnostic company that provides analytical workflow solutions. On May 8, 2026, Waters Corporation (NYSE:WAT) closed at $355.13 per share. One-month return of Waters Corporation (NYSE:WAT) was 9.38%, and its shares lost 3.15% over the past 52 weeks. Waters Corporation (NYSE:WAT) has a market capitalization of $34.86 billion.
Artisan Mid Cap Fund stated the following regarding Waters Corporation (NYSE:WAT) in its Q1 2026 investor letter:
"We also added to Edwards Lifesciences, Waters Corporation (NYSE:WAT) and Arthur J. Gallagher during the quarter. Waters is a leading provider of liquid chromatography and mass spectrometry instruments for pharmaceutical and industrial applications. Its strong recurring revenue and leadership positions in consolidated markets underscore its reputation for innovation and reliability. We expect the company to benefit from a rebound in commercial and late-stage clinical pharma demand, an instrument replacement cycle and growing exposure to biologics. In our view, the core business remains strong and recent integration challenges related to the BD Lifesciences acquisition are likely temporary, with improved execution and merger synergies supporting the next phase of the profit cycle. Based on our assessment, we added to the position during recent weakness."
Waters Corporation (NYSE:WAT) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 47 hedge fund portfolios held Waters Corporation (NYSE:WAT) at the end of the fourth quarter, up from 42 in the previous quarter. While we acknowledge the potential of Waters Corporation (NYSE:WAT) 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 Waters Corporation (NYSE:WAT) and shared the list of stocks on Jim Cramer’s radar. 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.