Artisan Partners, an investment management company, released its fourth-quarter 2025 investor letter for “Artisan Mid Cap Fund”.  A copy of the letter can be downloaded here. The Fund seeks to invest in companies that possess franchise characteristics, with strong earnings trajectories, and are trading at a discount to the estimated private market value. US equities ended a record year with robust fourth-quarter gains. The Fund’s Investor Class, ARTMX, delivered -0.44%, the Advisor Class, APDMX, delivered - ...

Core Insights - Brown Capital Management's Small Company Fund underperformed in Q4 2025, with a decline of 1.50% compared to the Russell 2000® Growth index's gain of 1.22% [1] - The Fund's performance for the entire year of 2025 was down 11.46%, significantly lagging behind the Index's return of 13.01% [1] - The Fund's investment strategy is based on company fundamentals, which showed strong revenue and earnings growth in 2025 [1] Company Focus: Veeva Systems Inc. - Veeva Systems Inc. (NYSE:VEEV) is a technology company providing a cloud-based software platform for the life sciences industry, with a market capitalization of $29.64 billion [2] - The stock of Veeva Systems Inc. experienced a one-month return of -19.57% and a 52-week decline of 20.26% [2] - Veeva Systems was identified as a detractor from the Fund's performance in Q4 2025, despite its strong market position and innovative solutions in the life sciences sector [3] - The company's offerings include Veeva Customer Relationship Management (CRM) and Veeva Vault, which have established a dominant market position and present opportunities for growth in clinical applications [3] - Veeva's client base includes major global pharmaceutical companies such as GlaxoSmithKline, AstraZeneca, Eli Lilly, Merck, and Novartis [3]

Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q4 2025, Conestoga Capital Advisors Mid Cap Strategy returned -5.75% net of fees compared to the Russell Midcap Growth Index’s -3.70% return. The underperformance was driven by negative stock selection in the Technology and Industrials sectors, while positive sector allocation effects partially eased underperformance. The Mid Cap Composite returned -4.73% ...

Core Viewpoint - Barclays believes that the current market panic regarding generative AI (GenAI) is based on a "worst-case scenario" assumption, predicting the extinction of traditional software companies, which mirrors the panic seen a decade ago with the rise of Amazon AWS [1][2] Historical Context - The current investor sentiment in the software sector is extremely negative, with a simplistic investment logic of buying AI newcomers and shorting traditional software [2] - This situation is reminiscent of the panic surrounding AWS's growth, where established software companies faced similar doomsday predictions, yet none went bankrupt due to AWS competition [4][5] Market Dynamics - Historical data shows that while AWS gained significant market share, it did not lead to the extinction of mature software companies; instead, these companies evolved and thrived [4][5] - The market's current indiscriminate sell-off of software stocks, with the IGV (software ETF) down approximately 24% year-to-date, is viewed as irrational [6] Mispricing Opportunities - Barclays identifies significant mispricing opportunities in the current market, particularly for companies with strong core record systems and specific domain moats that are being undervalued [1][6] - The panic selling creates an opportunity for investors to identify industry leaders that have been unfairly punished [7] Defensive Sectors - Two defensive sectors highlighted are: 1. Owners of record systems, such as Salesforce and SAP, which hold core enterprise data and are difficult to replace [9] 2. Vertical SaaS companies, like Veeva Systems and Tyler Technologies, which possess deep domain-specific data moats [9] Company Performance - Notable company performances include: - CyberArk's market cap surged from $885 million to $22.516 billion, a 2443% increase [8] - Microsoft and Google also saw significant market cap growth, with increases of 1048% and 871%, respectively [8] - Traditional companies like Teradata experienced a 73% decline, while others like Tableau and Splunk were acquired at high premiums [8]

Core Viewpoint - Veeva Systems is set to announce its financial results for the fourth quarter and full fiscal year ending January 31, 2026, on March 4, 2026, after market close [1] Group 1: Financial Results Announcement - The financial results will be discussed in a conference call and webcast scheduled for March 4, 2026, at 2:00 p.m. PT (5:00 p.m. ET) [1] - Prepared remarks will be available on Veeva's investor relations website at approximately 1:05 p.m. PT (4:05 p.m. ET) [1] - A replay of the webcast will be accessible on the website following the live event [1] Group 2: Company Overview - Veeva Systems provides industry cloud solutions for life sciences, including software, data, and business consulting [1] - The company serves over 1,500 customers, including major pharmaceutical companies and emerging biotechs [1] - As a Public Benefit Corporation, Veeva is dedicated to balancing the interests of all stakeholders, including customers, employees, shareholders, and the industries it serves [1]

Group 1: Fund Performance - Baron Asset Fund achieved a return of 7.89% in Q4 2025, outperforming the Russell Midcap Growth Index by 11.59 percentage points, which ended the quarter down 3.70% [1] - The Fund held a total of 53 positions as of December 31, 2025, with the 10 largest holdings representing 52.8% of net assets and the 20 largest holdings representing 73.3% of net assets [1] Group 2: Veeva Systems Inc. Analysis - Veeva Systems Inc. (NYSE:VEEV) was highlighted as a notable detractor for the Baron Asset Fund, with a one-month return of -19.20% and a 12-month decline of 21.22% [2] - The company's market capitalization is reported at $30.347 billion [2] - Following a quarterly update in November, Veeva's management tempered expectations for customer retention, expecting only 14 of the top 20 global pharmaceutical companies to adopt its next-generation Vault CRM product, down from 18 for the legacy Veeva CRM [3] - The termination of Veeva's long-standing partnership with Salesforce has allowed for greater control over its product roadmap but has also introduced direct competition with Salesforce, which has announced its own product development efforts [3] - Despite recent challenges, the company retains long-term conviction in Veeva due to favorable secular tailwinds and confidence in its 2030 financial targets [3]

Company Overview - Veeva Systems Inc. (VEEV) was founded in 2007 and is based in Pleasanton, CA, providing cloud-based software and data solutions along with business consulting services specifically for life sciences companies, including biotech and pharmaceuticals [1] Investment Philosophy - The investment philosophy emphasizes the importance of compounding, dividend reinvesting, and patient investing through various market conditions to achieve significant rewards [1] - The approach combines steady accumulation of high-quality assets with high-risk/high-reward opportunities, underappreciated turnaround plays, and transformative technologies [1] Academic Background - The individual behind the investment insights has over 20 years of teaching experience at the college/university level and holds a PhD from Brunel University, indicating a strong academic foundation [1]

Company Overview - Veeva Systems Inc. (VEEV) was founded in 2007 and is based in Pleasanton, CA, providing cloud-based software and data solutions along with business consulting services specifically for life sciences companies, including biotech and pharmaceuticals [1]. Investment Philosophy - The investment philosophy emphasizes the importance of compounding, dividend reinvesting, and patient investing through various market conditions to achieve significant rewards [1]. - The approach combines steady accumulation of high-quality assets with high-risk/high-reward opportunities, underappreciated turnaround plays, and transformative technologies [1]. Educational Background - The individual behind the investment insights has over 20 years of teaching experience at the college/university level and holds a PhD from Brunel University, indicating a strong academic background [1].

Core Insights - Veeva Systems announced that 13 of the top 20 biopharmaceutical companies have adopted Veeva Link Key People to enhance customer engagement and support AI initiatives globally [1] - The adoption of Link Key People has led to the addition of 38 new customers, with three of the top 20 biopharmas making it their global standard in the past year [1] Customer Engagement and AI Integration - Access to Veeva Link Key People strengthens data-driven decision-making, enhances targeting, and fosters engaging healthcare professional (HCP) interactions, ultimately benefiting patient healthcare [2] - The data from Link Key People has become integral to Bayer's data strategy, enriching AI-driven platforms and providing actionable business insights for long-term patient benefits [2] Value Delivery and Innovations - Link Key People provides valuable insights for medical and commercial teams, while analytics teams utilize Link data to enhance their AI models [3] - Recent innovations, including AI-powered summaries and personalized notifications, improve customer interactions and reveal new engagement opportunities [3] - The Link Direct Data API offers high-speed access to Veeva's data, further enhancing data accessibility for teams [3] Industry Impact and Strategic Relationships - The increasing use of Link Key People among top biopharmas and emerging biotechs is expected to advance engagement across the industry, leveraging deep Key Opinion Leader (KOL) data for strategic relationships [4] Veeva Data Cloud Integration - Link Key People is part of Veeva Data Cloud, which includes Veeva OpenData, Veeva HCP 360, and Veeva Compass, utilizing Veeva's Common Data Architecture to connect data and software [5] Company Overview - Veeva Systems provides industry cloud solutions for life sciences, serving over 1,500 customers, from large biopharmaceutical companies to emerging biotechs, with a commitment to innovation and customer success [6]

Core Insights - Veeva Systems has launched Veeva eSource, a new application aimed at reducing manual processes in clinical trials and enhancing data quality through direct data capture and integration with EHR and EDC systems [1][3]. Group 1: Product Features - Veeva eSource eliminates paper at clinical trial sites by providing a direct data capture application, streamlining data flow through EDC integration and EHR to EDC transfer [1][6]. - The application automates the flow of patient data from eSource to Veeva EDC, reducing latency and minimizing errors, while also allowing sites to create forms that align with study protocols [6]. - By using source data instead of transcribed data, Veeva eSource eliminates the need for source data verification (SDV), allowing sponsor staff to allocate their time more effectively [6]. Group 2: Industry Impact - The introduction of Veeva eSource is seen as a significant advancement towards simplifying and standardizing clinical trials, ultimately improving efficiency and experiences for sponsors, sites, and patients [3]. - The application is part of the Veeva SiteVault platform and is expected to be available for early adopters in the second half of 2026, indicating a strategic move to enhance clinical trial processes [3]. Group 3: Company Overview - Veeva Systems provides cloud-based solutions for the life sciences industry, serving over 1,500 customers, including major biopharmaceutical companies and emerging biotechs [4]. - As a Public Benefit Corporation, Veeva is dedicated to balancing the interests of various stakeholders, including customers, employees, and shareholders [4].