Artisan Partners, an investment management firm, published its Q3 2025 “Artisan Mid Cap Fund” investor letter. A copy of the letter can be downloaded here. Global stock markets continued to strengthen in the third quarter, ending the period with double-digit year-to-date gains. For the quarter, the fund’s ARTMX Investor Class Fund returned 8.80%, the Advisor Class Fund APDMX returned 8.80%, and the 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 healthcare sector. Plus, check out the fund’s top five holdings to learn your best picks in 2025.
In its Q3 2025 investor letter, Artisan Mid Cap Fund highlighted stocks like Tyler Technologies, Inc. (NYSE:TYL). Tyler Technologies, Inc. (NYSE:TYL) provides integrated information management solutions and services for the public sector. Tyler Technologies, Inc. (NYSE:TYL)’s monthly performance was -5.28% and its shares lost 14.65% of its value over the past 52 weeks. On October 15, 2025, shares of Tyler Technologies, Inc. (NYSE:TYL) closed at $502.05 per share, with a market capitalization of $21.72 billion.
Artisan Mid Cap Fund stated the following regarding Tyler Technologies, Inc. (NYSE:TYL) in its Q3 2025 investor letter:
“Notable cuts in the quarter included Arista Networks, Snowflake and Tyler Technologies, Inc. (NYSE: TYL). Tyler Technologies provides end-to-end information management solutions and services for local government offices. When we purchased the stock in 2020, our investment thesis focused on its durable growth potential, driven by the resilience of its end markets and the opportunity presented by its transition to cloud-based subscriptions. As anticipated, the shift to the cloud accelerated revenue growth and contributed to margin expansion. “We trimmed our position during the quarter as the stock’s valuation increasingly reflected these benefits, but we continue to hold it in CropSM.”
Tyler Technologies, Inc. (NYSE:TYL) isn’t on our list of the 30 most popular stocks among hedge funds. According to our database, Tyler Technologies, Inc. (NYSE:TYL) had 46 hedge fund portfolios at the end of the second quarter, up from 44 in the previous quarter. In Q2 2025, Tyler Technologies, Inc. (NYSE:TYL) reported $596.1 million in revenue, representing a 10.2% increase compared to Q2 2024. While we recognize the potential of Tyler Technologies, Inc. (NYSE:TYL) as an investment, we believe certain AI stocks offer greater potential bullish and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.