Here’s What Led Artisan Mid Cap Fund to Exit Atlassian Corporation (TEAM)

Group 1: Artisan Mid Cap Fund Performance - Artisan Mid Cap Fund's Investor Class fund ARTMX returned 8.80%, Advisor Class fund APDMX also posted a return of 8.80%, and Institutional Class fund APHMX returned 8.83% in Q3 2025, significantly outperforming the Russell Midcap Growth Index which returned 2.78% [1] - The strong performance was primarily driven by holdings in the health care sector [1] Group 2: Atlassian Corporation Overview - Atlassian Corporation (NASDAQ:TEAM) is recognized as a leading collaboration software provider, with a one-month return of -9.22% and a 52-week gain of 17.42% [2] - As of October 14, 2025, Atlassian's stock closed at $156.37 per share, with a market capitalization of $41.021 billion [2] Group 3: Artisan Mid Cap Fund's Position on Atlassian - Artisan Mid Cap Fund decided to exit its position in Atlassian due to concerns over its cloud revenue growth decelerating to 26% year-over-year and the challenges posed by its seat-based pricing model [3] - The fund expressed that Atlassian needs to transition from a traditional SaaS model to a usage-based or value-based monetization approach, but this shift lacks strong valuation support unless executed effectively [3] - The evolving perspective on SaaS fundamentals and the belief that significant upside is unlikely until Atlassian's AI investments yield substantial revenue contributed to the decision to exit [3] Group 4: Hedge Fund Interest in Atlassian - At the end of Q2 2025, 64 hedge fund portfolios held Atlassian Corporation, a decrease from 82 in the previous quarter [4] - While Atlassian is acknowledged for its potential, the focus has shifted towards certain AI stocks that are perceived to offer greater upside potential and lower downside risk [4]