Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equity markets continued their strength in the third quarter, ending the period with double-digit year-to-date gains. In the quarter, the fund’s Investor Class fund ARTMX returned 8.80%, Advisor Class fund APDMX posted a return of 8.80%, and Institutional Class fund APHMX returned 8.83%, compared to a 2.78% return for the Russell Midcap Growth Index. The significant outperformance was led by holdings in the health care sector. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Artisan Mid Cap Fund highlighted stocks such as Woodward, Inc. (NASDAQ:WWD). Woodward, Inc. (NASDAQ:WWD) designs and develops control solutions for the aerospace and industrial markets. The one-month return of Woodward, Inc. (NASDAQ:WWD) was 7.52%, and its shares gained 54.16% of their value over the last 52 weeks. On October 14, 2025, Woodward, Inc. (NASDAQ:WWD) stock closed at $255.34 per share, with a market capitalization of $15.312 billion.
Artisan Mid Cap Fund stated the following regarding Woodward, Inc. (NASDAQ:WWD) in its third quarter 2025 investor letter:
“During the quarter, we initiated new positions in Woodward, Inc. (NASDAQ:WWD), Teledyne Technologies and ServiceTitan. Woodward is a leading supplier of mission-critical motion and control systems, with approximately two thirds of its revenue derived from aerospace and defense. Its significant exposure to next-generation narrowbody aircraft engines positions the company to benefit from a high-margin aftermarket opportunity. As shop visits for these engines increase, we expect this segment to grow at an elevated rate for years, supporting long-term EPS growth potential. Meanwhile, Woodward’s industrial segment is showing signs of recovery, supported by strength in power generation, smart defense munitions and stabilization in China.”
Woodward, Inc. (NASDAQ:WWD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 54 hedge fund portfolios held Woodward, Inc. (NASDAQ:WWD) at the end of the second quarter, up from 45 in the previous quarter. In the fiscal third quarter of 2025, Woodward, Inc. (NASDAQ:WWD) reported revenue of $915 million, an increase of 8%, reflecting the strong demand across end markets. While we acknowledge the potential of Woodward, Inc. (NASDAQ:WWD) 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.
