Artisan Partners, an investment management company, released its first-quarter 2026 investor letter for “Artisan Value Fund”. A copy of the letter is available to download here. The Funds’ Investor Class: ARTLX, Advisor Class: APDLX, and Institutional Class: APHLX returned -3.54%, -3.50%. and 3.50%, respectively, in Q1 vs, 2.10% return for the Russell 1000® Value Index. Performance was impacted by a market favoring momentum-driven stocks over quality factors, alongside company-specific setbacks. In Q1 2026, the US equity market showed mixed results: large-cap indices declined, while mid- and small-cap stocks gained modestly, reflecting a gradual broadening in market participation. Volatility increased, driven by concerns over artificial intelligence and private credit, and further escalated due to the outbreak of conflict in Iran. Despite uncertainty, the Fund focuses on identifying companies that can create value through cycles, particularly where market dislocations provide attractive entry points. 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 Value Fund highlighted stocks like PayPal Holdings, Inc. (NASDAQ:PYPL). PayPal Holdings, Inc. (NASDAQ:PYPL) is a leading technology platform that provides digital payment solutions for merchants and consumers. On May 22, 2026, PayPal Holdings, Inc. (NASDAQ:PYPL) stock closed at $45.85 per share. One-month return of PayPal Holdings, Inc. (NASDAQ:PYPL) was 3.36%, and its shares lost 24.29% over the past 52 weeks. PayPal Holdings, Inc. (NASDAQ:PYPL) has a market capitalization of $42.21 billion.
Artisan Value Fund stated the following regarding PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q1 2026 investor letter:
“Among the portfolio’s biggest decliners were Salesforce, Accenture, Humana andPayPal Holdings, Inc. (NASDAQ:PYPL), each of which dropped by 20% or more during the quarter. In early February, PayPal, an e-commerce payments company, sold off following weak earnings and due to heightened uncertainty after a sudden CEO change. The company reported results below expectations and lowered earnings and transaction margins guidance. Performance was particularly weak in its high-margin branded checkout business, where growth slowed amid macro headwinds and execution issues. Share losses also accelerated in key markets due to intensifying competition from Apple Pay and Stripe, reinforcing concerns about structural pressure on PayPal’s core franchise. The earnings miss had been largely anticipated, leading us to reduce our position in late 2025 while remaining invested to assess management’s turnaround plan. However, the abrupt CEO dismissal was unexpected and increases uncertainty around the turnaround’s strategy and timing. With the increased probability that the leadership transition may delay improvement, we exited our remaining position.”
