What Makes Cognex Corporation (CGNX) an Investment Bet?

Core Insights - Artisan Partners' "Artisan Small Cap Fund" reported strong performance in Q3 2025, with major US indices reaching record highs and the fund's Investor Class returning 8.69% [1] - Cognex Corporation (NASDAQ:CGNX) was highlighted as a key investment, despite a one-month return of -25.46% and a 52-week decline of 8.35% [2][4] - The investment thesis for Cognex is supported by a new management team, advancements in AI, and potential cyclical recovery in its end markets [3] Fund Performance - The Artisan Small Cap 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 [1] - The Russell 2000 Growth Index had a higher return of 12.19% during the same period [1] Cognex Corporation Overview - Cognex Corporation specializes in machine vision products for automating manufacturing and distribution tasks [2] - As of November 17, 2025, Cognex's stock closed at $35.98 with a market capitalization of $6.03 billion [2] - Cognex reported Q3 2025 revenue of $277 million, an 18% increase year-over-year [4] Investment Thesis for Cognex - The investment thesis includes three key drivers: a new management team focused on customer service and cost control, advancements in AI reducing costs for small and mid-sized customers, and potential cyclical recovery in end markets [3] - Cognex is not among the top 30 most popular stocks among hedge funds, with 41 hedge fund portfolios holding its stock at the end of Q2 2025 [4]