Artisan Partners, an investment management firm, published its Q3 2025 “Artisan Small Cap Fund” investor letter. A copy of the letter can be downloaded here. Global stocks continue to rise in the third quarter, the period with double-digit gains to date. Major US indices such as the Russell 1000®, Russell Midcap® and Russell 2000® reached all-time highs in the period. For the quarter, the fund’s ARTSX investor class fund returned 8.69%, the Advisor class fund APDSX returned 8.75%, and the institutional class fund APHSX returned 8.73%, compared to a 12.19% return for the Russell 2000 Growth Index. Additionally, you can check out the fund’s top 5 holdings to see your top picks for 2025.
In its Q3 2025 investor letter, Artisan Small Cap Fund highlighted stocks like Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI). Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) is a US-based retailer of clearance merchandise and excess inventory. Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI)’s monthly performance was 1.24% and its shares gained 37.46% of its value in the last 52 weeks. On November 17, 2025, shares of Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) closed at $122.89 per share, with a market capitalization of $7.538 million.
Artisan Small Cap Fund stated the following regarding Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) in its Q3 2025 investor letter:
“Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) is a discount retailer that offers a treasure-hunt shopping experience with name-brand products at deeply discounted prices. Like Cognex, Ollie’s is a company we’ve had before. We believe its differentiated closing retail model benefits from several structural tailwinds, including an Amazon-resistant format, increased access to prime retail locations due to the closure of competing stores (e.g., Big Lots), and strong supplier relationships. Favorable cyclical trends are also seen, such as the downward trend in consumer trade, continued disruptions in the retail landscape, and tariff-related volatility. These dynamics are driving strong clearance inventory availability and accelerating the growth of its loyalty program, Ollie’s Army, which now represents approximately 80% of total sales. Additionally, a relatively new management team is implementing improved systems and processes to further professionalize operations and support long-term expansion.”
Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) isn’t on our list of the 30 most popular stocks among hedge funds. According to our database, 32 hedge fund portfolios owned Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) at the end of the second quarter, up from 25 in the previous quarter. While we recognize the potential of Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) as an investment, we believe certain IA stocks offer greater upside potential 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.