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Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund’s Investor Class fund ARTMX returned -7.40%, Advisor Class fund APDMX posted a return of -7.37%, and Institutional Class fund APHMX returned -7.35%, compared to a -7.12% return for the Russell Midcap Growth Index. US equities achieved solid Q4 gains, concluding a strong year. After a period of strong growth stock performance in 2023 and 2024, value stocks gained the lead in Q1 2025. In a risk-averse environment, investors shifted towards lower-volatility equities, especially in the utilities and consumer staples sectors, alongside those with higher dividend yields. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Artisan Mid Cap Fund highlighted stocks such as Datadog, Inc. (NASDAQ:DDOG). Datadog, Inc. (NASDAQ:DDOG) is an observability and security platform for cloud applications. The one-month return of Datadog, Inc. (NASDAQ:DDOG) was 21.49%, and its shares lost 5.96% of their value over the last 52 weeks. On May 05, 2025, Datadog, Inc. (NASDAQ:DDOG) stock closed at $105.70 per share with a market capitalization of $36.502 billion.
Artisan Mid Cap Fund stated the following regarding Datadog, Inc. (NASDAQ:DDOG) in its Q1 2025 investor letter:
"We ended our investment campaigns in Illumina, Best Buy and Datadog, Inc. (NASDAQ:DDOG) during the quarter. Datadog is a leading provider of monitoring tools and analytics for cloud-based applications. As businesses across the economy undergo digital transformations, their need to monitor and optimize the performance of cloud computing infrastructure becomes increasingly critical. We believe Datadog’s low-cost customer acquisition model and impressive pace of new product development position it well for years of strong profit growth. However, after a strong rally in shares, we exited the position due to our valuation discipline."
A close-up of a laptop with a software engineer coding on the monitor.
Datadog, Inc. (NASDAQ:DDOG) is in not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 83 hedge fund portfolios held Datadog, Inc. (NASDAQ:DDOG) at the end of the fourth quarter which was 71 in the previous quarter. While we acknowledge the potential of Datadog, Inc. (NASDAQ:DDOG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.