Artisan Partnersan investment management company, released an investor letter for the first quarter of 2026 for “Artisan Small Cap fund”. A copy of the book is available for download here. US stocks were mixed in Q1 2026, with major indexes hitting record highs in January before retreating amid geopolitical tensions, changing monetary policy, and economic uncertainty. Energy stocks rallied, outperforming the market, while value growth outpaced efficiency as investors shifted from technology to more sensitive asset classes. Market leadership is extended, with mid- and small-cap indices outperforming large-caps. The Iran conflict has had an impact on market behavior. AI-related investments were supported by capital spending and gains, although investor sentiment was mixed. The portfolio saw negative returns but outperformed the Russell 2000® Growth Index, providing some downside protection. Investor Class: ARTSX, Adviser Class: APDSX, and Institutional Class: APHSX returned -2.72%, -2.68%, and -2.69%, respectively, in the first quarter compared to a -2.81% return for the index. The market has shifted to cyclical, commodity sectors, which are not very consistent with high quality, due to world events and energy shocks. Despite this, most of the portfolio companies have maintained strong earnings in line with their profit cycles. The company views this environment as supporting its stock selection approach, which focuses on bottom-up stock selection across industries. In addition, please check the top five funds of the Fund to know their best choices in 2026.
In its investor letter for the first quarter of 2026, Small Artisan Fund highlighted Compass, Inc. (NYSE:COMP). Compass, Inc. (NYSE:COMP) is a technology company that provides an end-to-end technology platform for residential properties. On June 4, 2026, Compass, Inc. (NYSE:COMP) closed at $7.88 per share. One-month returns for Compass, Inc. (NYSE:COMP) was -10.67%, and its shares gained 23.84% in the last 52 weeks. Compass, Inc. (NYSE:COMP) has a market capitalization of $5.97 billion.
Artisan Small Cap Fund says the following about Compass, Inc. (NYSE:COMP) in its Q1 2026 investor letter:
“Major reductions in Q1 have been included Compass, Inc. (NYSE:COMP), ServiceTitan and Guidewire. Compass is a residential brokerage that uses an integrated technology platform to improve agent productivity and customer engagement. Shares fell despite better-than-expected quarterly results and an earlier-than-expected closing of its Anywhere Real Estate acquisition. Investor concerns centered on potential AI disruptions, rising interest rates and soft near-term earnings guidance, partly affected by adverse winter weather. We’ve added a position during the retreat, as we don’t believe AI poses a tangible threat to Compass’ agent-led model. Real estate transactions remain complex, relationship-driven and high-value, and previous changes in technology have strengthened—rather than replaced—the role of experienced agents. We also look at the impact of higher interest rates and weather-related factors as short-term.”
