Artisan Partners, an investment management company, released its fourth-quarter 2025 investor letter for “Artisan Mid Cap Value Fund”. A copy of the letter can be downloaded here. The Fund seeks to invest in undervalued companies with solid financial health and compelling business economics. US equities continued to advance in the fourth quarter of 2025, despite volatility. At the start of the quarter, a government shutdown unsettled investors and delayed key economic data, raising questions about the Federal Reserve’s easing timeline. However, as the quarter progressed, risk appetite increased, and clarity around monetary policy improved, leading the Fed to implement rate cuts and end quantitative tightening. This suggests a continued easing of financial conditions into 2026. While AI remained a key focus, markets diversified in November, with value and non-AI stocks leading. This could indicate a shift in market leadership moving forward. Mid-cap stocks lagged large caps in Q4, particularly on the growth side, as the Russell Midcap® Growth Index declined 3.7% while mid-cap value posted a modest gain and outperformed the growth index for the quarter and full year. In the quarter, the fund’s Investor Class fund ARTQX returned 1.53%, Advisor Class fund APDQX posted a return of 1.54%, and Institutional Class fund APHQX returned 1.63%, compared to a 1.42% return for the Russell Midcap Value Index. 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 Mid Cap Value Fund highlighted stocks like LKQ Corporation (NASDAQ:LKQ). LKQ Corporation (NASDAQ:LKQ) is a leading vehicle parts distributor used in the repair and maintenance of for vehicles and specialty vehicles. On March 31, 2026, LKQ Corporation (NASDAQ:LKQ) closed at $29.37 per share. One-month return of LKQ Corporation (NASDAQ:LKQ) was -7.90%, and its shares lost 31.92% over the past 52 weeks. LKQ Corporation (NASDAQ:LKQ) has a market capitalization of $7.54 billion.
Artisan Mid Cap Value Fund stated the following regarding LKQ Corporation (NASDAQ:LKQ) in its fourth quarter 2025 investor letter:
“Q4 sales included WaFd, a regional bank based in Seattle; LKQ Corporation (NASDAQ:LKQ), a vehicle parts distributor; and Bio-Rad Laboratories (BIO). While LKQ’s low valuation suggests little downside risk, we have become less optimistic about repairable claims inflecting higher in the near term.”
LKQ Corporation (NASDAQ:LKQ) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 43 hedge fund portfolios held LKQ Corporation (NASDAQ:LKQ) at the end of the fourth quarter, compared to 49 in the previous quarter. While we acknowledge the potential of LKQ Corporation (NASDAQ:LKQ) 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.
