Artisan Partners, an investment management firm, issued its first-quarter 2026 investor letter for the "Artisan Mid Cap Value Fund". A copy of this letter is available for download here. In Q1 2026, the portfolio underperformed the benchmark Russell Midcap Value Index as the market favored momentum-driven stocks over quality factors. Some holdings faced company-specific setbacks and negative sentiment. The Fund's Investor Class: ARTQX returned -4.93%, Advisor Class: APDQX declined by -4.90%, and Institutional Class: APHQX fell by -4.97%, all trailing the Index's 3.68% gain. The equity market in the quarter was mixed, with mid- and small-cap indices showing resilience despite lagging large-cap growth stocks. Volatility increased, initially fueled by interest in AI and private credit, but escalated after the outbreak of war in Iran, leading to rising oil prices. Sector performance varied, with energy leading the gains. The Fund continues to seek companies capable of value growth during market dislocations at attractive entry points. Also, review the Fund's top five holdings to see its best picks for 2026.
In its first-quarter 2026 investor letter, Artisan Mid Cap Value Fund highlighted NOV Inc. (NYSE:NOV) as one of its leading contributors. NOV Inc. (NYSE:NOV) is a leading provider of equipment, technology, and expertise to the oil and gas industry. On July 7, 2026, NOV Inc. (NYSE:NOV) closed at $18.28 per share. One-month return of NOV Inc. (NYSE:NOV) was -13.28%, and its shares gained 36.21% over the past 52 weeks. NOV Inc. (NYSE:NOV) has a market capitalization of $6.56 billion.
Artisan Mid Cap Value Fund stated the following regarding NOV Inc. (NYSE:NOV) in its Q1 2026 investor letter:
"Our energy holdings were well represented among our top contributors, benefiting from higher energy prices. Permian Resources (PR), an independent oil and gas company, and NOV, the largest manufacturer of oilfield equipment, led the way. NOV Inc. (NYSE:NOV) ended 2025 on a solid note, with Q4 revenue up nearly 5% sequentially and earnings beating expectations, helped by strong execution, backlog conversion and market share gains even as broader global activity remained soft. NOV's energy equipment segment has been a bright spot, benefiting from stronger offshore demand and a growing backlog that supports future activity. Cash flow generation has remained solid, allowing NOV to continue returning capital to shareholders. The Middle East conflict is creating near term headwinds for NOV through logistical and supply-chain disruptions, weaker aftermarket demand and softer customer ordering activity across the region. Thankfully, the company has reported no personnel injuries or facility damage, and its Saudi rig-building and composite pipe facilities remain operational. The disruption is likely to impact near-term results, but the longer term outlook remains intact, in our view, supported by NOV's diversified global footprint and a still-constructive offshore bac