Artisan Small Cap Fund Sold Inspire Medical Systems (INSP) Amid Challenges

Core Viewpoint - Artisan Partners' "Artisan Small Cap Fund" reported strong performance in Q3 2025, with major US indices reaching record highs, although the fund's returns lagged behind the Russell 2000 Growth Index [1]. Fund Performance - The fund's Investor Class fund ARTSX returned 8.69%, Advisor Class fund APDSX returned 8.75%, and Institutional Class fund APHSX returned 8.73% in Q3 2025, compared to a 12.19% return for the Russell 2000 Growth Index [1]. Company Focus: Inspire Medical Systems, Inc. - Inspire Medical Systems, Inc. (NYSE:INSP) is highlighted as a key stock, focusing on minimally invasive solutions for obstructive sleep apnea, with a one-month return of 2.51% and a 52-week loss of 51.79% [2]. - As of November 17, 2025, Inspire Medical Systems had a market capitalization of $2.51 billion, with shares closing at $84.87 [2]. Investment Strategy and Challenges - Artisan Small Cap Fund exited its investment in Inspire Medical Systems due to significant challenges with the launch of its Inspire V system and concerns about emerging competition [3]. - The company was previously considered a leader in hypoglossal nerve stimulation for sleep apnea, but the fund reduced its position due to competitive pressures [3]. Hedge Fund Interest - Inspire Medical Systems was held by 34 hedge fund portfolios at the end of Q2 2025, a decrease from 37 in the previous quarter, indicating reduced interest among hedge funds [4]. Financial Performance - In Q3 2025, Inspire Medical Systems reported revenue of $224.5 million, reflecting a 10% increase from Q3 2024 [4].