Artisan Companions, an funding administration agency, launched its “Artisan Small Cap Fund” second-quarter 2025 investor letter. A reproduction of the letter could also be downloaded proper right here. Worldwide markets seen an unbelievable nevertheless dangerous second quarter, shifting from deep declines to sturdy constructive points. Throughout the quarter, its Investor Class fund ARTSX returned 7.30%, Advisor Class fund APDSX posted a return of seven.33%, and Institutional Class fund APHSX returned 7.36%, compared with a return of 11.97% for the Russell 2000 Progress Index. In addition to, chances are you’ll take a look at the fund’s excessive 5 holdings to look out out its biggest picks for 2025.
In its second-quarter 2025 investor letter, Artisan Small Cap Fund highlighted shares such Freshworks Inc. (NASDAQ:FRSH). Freshworks Inc. (NASDAQ:FRSH) is a software program program enchancment agency that provides software-as-a-service merchandise. The one-month return of Freshworks Inc. (NASDAQ:FRSH) was -0.21%, and its shares gained 15.07% of their price over the previous 52 weeks. On August 22, 2025, Freshworks Inc. (NASDAQ:FRSH) stock closed at $13.97 per share, with a market capitalization of $4.071 billion.
Artisan Small Cap Fund acknowledged the subsequent regarding Freshworks Inc. (NASDAQ:FRSH) in its second quarter 2025 investor letter:
“We ended our funding campaigns in Saia, Freshworks Inc. (NASDAQ:FRSH) and Iovance in the midst of the quarter. Freshworks is a cloud-based software program program agency that provides choices to spice up purchaser and employee experiences all through diverse enterprise options. We initiated a GardenSM advertising marketing campaign on the end of 2024 primarily based totally on the thesis that Freshworks would effectively switch upmarket, capturing enterprise from ServiceNow, and that the company would revenue from artificial intelligence (AI) tendencies, notably given its buyer assist chatbot product, which had been effectively monetized for various quarters. We ended the advertising marketing campaign this quarter ensuing from concerns regarding how efficiently Freshworks may transition from a seat-based to an enterprise-based pricing model given AI’s potential to boost the effectivity of its prospects whereas moreover enabling these prospects to chop again employment ranges.”
An in depth-up picture of a software program program engineer typing code on a laptop computer pc.
Freshworks Inc. (NASDAQ:FRSH) isn’t on our itemizing of 30 Most Commonplace Shares Amongst Hedge Funds. As per our database, 35 hedge fund portfolios held Freshworks Inc. (NASDAQ:FRSH) on the end of the second quarter, which was 41 throughout the earlier quarter. Freshworks Inc. (NASDAQ: FRSH) reported Q2 earnings of $204.7 million, marking an 18% year-over-year improvement, with a non-GAAP working margin of twenty-two% and adjusted free cash transfer margin of 27%. Whereas we acknowledge the potential of Freshworks Inc. (NASDAQ:FRSH) as an funding, we take into account certain AI shares present higher upside potential and carry a lot much less draw again menace. For individuals who’re looking out for an particularly undervalued AI stock that moreover stands to revenue significantly from Trump-era tariffs and the onshoring sample, see our free report on the biggest short-term AI stock.