Home / Business and Economy / Artisan Mid Cap Fund Outperforms Russell Midcap Growth Index by Over 6% in Q3 2025
Artisan Mid Cap Fund Outperforms Russell Midcap Growth Index by Over 6% in Q3 2025
15 Oct
Summary
- Artisan Mid Cap Fund outperformed Russell Midcap Growth Index by 6%+ in Q3 2025
- Spotify identified as a key holding with potential for multiyear profit cycle
- Fund sees AI stocks offering greater upside potential than Spotify
In its third-quarter 2025 investor letter, Artisan Partners' Artisan Mid Cap Fund reported impressive results, outperforming the Russell Midcap Growth Index by over 6%. The fund's Investor Class, Advisor Class, and Institutional Class all posted returns around 8.8%, significantly higher than the index's 2.78% return.
The fund's strong performance was largely driven by its holdings in the healthcare sector. One of the key stocks highlighted in the letter was Spotify Technology S.A. (NYSE:SPOT), the audio streaming platform. Artisan Mid Cap Fund believes Spotify is well-positioned to increasingly monetize its dominant share in global music distribution and discovery, with key levers such as pricing, advertising, and tiered premium subscriptions poised to drive a multiyear profit cycle.
While acknowledging Spotify's potential, the fund also noted that certain AI stocks offer greater upside potential and carry less downside risk. Investors looking for an extremely undervalued AI stock that could benefit from Trump-era tariffs and the onshoring trend were advised to refer to the fund's free report on the best short-term AI stock.
