Artisan Partners, an investment management company, released its fourth-quarter 2025 investor letter for “Artisan Small 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. Despite strong results in 2025, volatility was elevated, and sentiment shifted frequently, influenced by political developments in the US, evolving trade policy rhetoric, changing expectations for monetary policy, and ongoing geopolitical tensions. Against this backdrop, the Fund posted strong absolute returns in the fourth quarter, outperforming both the Russell 2000® Growth Index and the Russell 2000® Index. The portfolio delivered strong results in the quarter across all segments. In contrast, for the full year, the Fund generated strong results but trailed both the indexes. In Q4 2025, the market leadership shifted back to companies with durable profit cycles. Moving to 2026, the firm continues to focus on its proven technique of identifying profit cycles in franchise companies at reasonable valuations. 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 Small Cap Fund highlighted stocks like Cellebrite DI Ltd. (NASDAQ:CLBT). Headquartered in Petah Tikva, Israel, Cellebrite DI Ltd. (NASDAQ:CLBT) is a digital forensics company that offers DI suite of solutions to law enforcement, military, and other customers. On March 16, 2026, Cellebrite DI Ltd. (NASDAQ:CLBT) stock closed at $14.40 per share. One-month return of Cellebrite DI Ltd. (NASDAQ:CLBT) was 0.70%, and its shares lost 22.25% over the past 52 weeks. Cellebrite DI Ltd. (NASDAQ:CLBT) has a market capitalization of $3.592 billion.
Artisan Small Cap Fund stated the following regarding Cellebrite DI Ltd. (NASDAQ:CLBT) in its fourth quarter 2025 investor letter:
“During the quarter, we initiated new positions in nLIGHT, Guardant Health and Cellebrite DI Ltd. (NASDAQ:CLBT). Cellebrite provides digital forensics software that helps law enforcement, governments and enterprises access and analyze data from devices and cloud sources. We added the company to the GardenSM after identifying a new product cycle that could shift its business from point solutions to a broader, integrated platform. Expert calls reinforced our view of Cellebrite’s durable franchise. In early 2025, budget-related constraints on government spending created a temporary headwind, mainly from public sector clients. We expect this segment to resume growth in 2026 as budgets normalize.”
