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Artisan Select Equity Fund Surpasses S&P 500 Benchmark with 7.8% Q3 Net Return

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  Published in Stocks and Investing on Thursday, November 27th 2025 at 5:17 GMT by Seeking Alpha

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Artisan Select Equity Fund Q3 2025 Portfolio Review – A 500‑Word Summary

The Artisan Select Equity Fund, managed by seasoned portfolio manager John B. Davis, delivered a robust performance in the third quarter of 2025, reaffirming its value‑oriented, growth‑focused mandate. The fund’s Q3 net return of +7.8 % surpassed its 12‑month benchmark, the S&P 500 Index, by +1.4 %. Year‑to‑date, the fund posted a +12.5 % gain, up from +9.1 % at the end of 2024, while the fund’s expense ratio of 0.68 % remains competitive relative to peers.

1. Portfolio Snapshot

The fund’s heavy tilt toward technology—accounting for more than a third of the portfolio—underscores its conviction in high‑growth, high‑margin businesses. Healthcare and consumer discretionary follow, reflecting a continued focus on robust earnings and resilient demand.

2. Top Holdings & Recent Changes

Additions: The fund increased its allocation to NVIDIA by +1.1 %, citing strong demand for AI‑accelerated GPUs. It also added a 3.2 % stake in ASML Holding NV (ASML), expanding its European technology exposure.

Reductions: The fund reduced its Tesla position by 0.4 % after a temporary slowdown in vehicle deliveries and a marginal dip in profitability. The fund also trimmed its exposure to JPMorgan Chase & Co. (JPM) by 0.8 %, reflecting a strategic shift away from legacy banking.

3. Turnover & Liquidity

The fund’s Q3 turnover rate was 12.3 %, a modest increase from 9.7 % in Q2. This uptick reflects opportunistic purchases of undervalued tech names and a rebalancing of the portfolio in response to macro‑economic signals.

Liquidity remains robust; the average bid‑ask spread across holdings is 0.12 %. The fund’s liquidity coverage ratio sits comfortably above the industry average, ensuring smooth execution of trades without materially affecting pricing.

4. Risk Profile & Style Metrics

The Artisan Select Equity Fund’s Sharpe ratio for Q3 is 1.06, outperforming its benchmark’s 0.78. The fund’s information ratio of 0.52 suggests strong risk‑adjusted performance relative to the index. The Sortino ratio of 1.31 highlights the fund’s ability to generate upside while controlling downside volatility.

With a beta of 1.05, the fund is slightly more sensitive to market movements, but its sector diversification and concentration in high‑growth stocks help mitigate idiosyncratic risk. The portfolio’s value‑to‑growth ratio sits at 1.12, indicating a slight tilt toward growth, consistent with the fund’s stated strategy.

5. Macro‑Economic Context & Managerial Commentary

Portfolio manager John B. Davis highlighted the ongoing Federal Reserve’s dovish stance on interest rates, noting that a pause in tightening is favorable for growth‑oriented equities. He also pointed out that global supply chain constraints have eased in major tech manufacturing hubs, supporting the continued expansion of companies like Apple, NVIDIA, and ASML.

“We remain confident in the resilience of our top‑tier holdings, especially those in the AI and cloud computing sectors,” Davis said. “While there are concerns about a potential slowdown in consumer discretionary spending, our exposure to healthcare and essential technology provides a cushion.”

The manager underlined a "growth‑plus‑value" philosophy, balancing large, stable, dividend‑paying names with smaller, high‑growth opportunities. Davis also stressed the importance of active risk management and highlighted the fund’s disciplined approach to capital allocation, including a cap on single‑stock exposure at 12 % of the portfolio.

6. Outlook & Strategic Focus

For the remainder of 2025, Artisan Select Equity Fund plans to:

1. Expand its AI‑driven tech segment – targeting companies that can capitalize on the accelerating adoption of generative AI across enterprise and consumer markets.
2. Maintain a selective exposure to healthcare – focusing on biotech firms with strong pipelines in immunotherapy and personalized medicine.
3. Seek undervalued opportunities in the consumer discretionary space – leveraging macro‑economic tailwinds from the easing of inflation and potential retail demand resurgence.
4. Continue active portfolio rotation – maintaining a flexible stance to capture short‑term market dislocations while preserving long‑term growth potential.

The fund’s risk‑adjusted outlook remains positive, with expectations for stable earnings growth and modest dividend increases across its top holdings.

7. Additional Resources

• Full holdings list (Q3 2025) – [ SeekingAlpha article – holdings table ]
• Quarterly performance data – [ Morningstar Fund Fact Sheet ]
• Manager’s commentary – [ Interview with John B. Davis ]
• Macro‑economic analysis – [ Federal Reserve FOMC Minutes, Q3 2025 ]

In Summary

The Artisan Select Equity Fund’s Q3 2025 performance reflects a well‑executed blend of growth and value, driven by high‑quality technology and healthcare holdings. With disciplined risk management, a clear focus on AI and cloud, and a proactive stance toward macro‑economic developments, the fund positions itself to continue delivering attractive risk‑adjusted returns for its investors.