Artisan Partners released its second-quarter 2026 investor letter for its 'Artisan Small Cap Fund.' The report highlights several key market trends observed during the period. While market leadership favored losing, highly leveraged companies, healthcare emerged as the strongest relative contributor to the fund's performance. Additionally, the portfolio saw positive contributions from energy, materials, financials, and real estate, while technology, industrials, and consumer discretionary sectors detracted from overall results.
The Artisan Small Cap Fund demonstrated significant growth in the second quarter. The Investor Class (ARTSX) returned 26.02%, the Advisor Class (APDSX) reached 26.05%, and the Institutional Class (APHSX) delivered 26.11%. These figures outperformed the Russell 2000 Growth Index, which saw a return of 25.71% during the same period. Despite these gains, the fund has intentionally reduced its exposure to software.
Modine Manufacturing Company is a global leader in thermal management. The company reported a solid quarter driven by robust demand from hyperscale data center customers and accelerating growth within its climate solutions business. Modine announced a long-term capacity agreement that reinforced demand visibility through 2029.
Market performance for Modine has been notable despite some operational hurdles. On July 24, 2026, the stock closed at $241.79 per share, with a market capitalization of $12.84 billion. While its one-month return was -5.68%, the stock maintains a 52-week trading range between $102.93 and $323.25.
Artisan Partners has adjusted its holdings following recent market movements. The fund trimmed its position in Modine following the stock's significant appreciation. Despite this trim, the fund remains positive regarding small-cap opportunities, AI infrastructure, and healthcare.
Institutional interest in the company remains steady. At the end of the first quarter, 61 hedge fund portfolios held Modine, an increase from 59 portfolios in the previous quarter.