What Makes Waters (WAT) a Strong Investment?

Core Insights - Artisan Mid Cap Fund's fourth-quarter 2025 investor letter highlights the performance of the fund and its investment strategy focused on companies with strong earnings and franchise characteristics [1] - The fund's Investor Class, Advisor Class, and Institutional Class delivered returns of -0.44%, -0.37%, and -0.35% respectively, compared to a -3.70% return for the Russell Midcap® Growth Index [1] Company-Specific Insights - Waters Corporation (NYSE:WAT) is identified as a key investment, specializing in analytical workflow solutions, particularly in liquid chromatography and mass spectrometry [2][3] - As of February 23, 2026, Waters Corporation's stock closed at $327.78, with a one-month return of -15.97% and a 52-week loss of 13.93%. The company has a market capitalization of $32.15 billion [2] - The fund increased its position in Waters Corporation due to strong quarterly results and expectations of growth driven by a rebound in pharmaceutical demand, an instrument replacement cycle, and favorable regulatory trends [3] Market Position and Hedge Fund Interest - Waters Corporation is held by 47 hedge fund portfolios at the end of the fourth quarter, an increase from 42 in the previous quarter, indicating growing interest among institutional investors [4] - Despite the potential of Waters Corporation, the fund suggests that certain AI stocks may offer greater upside potential and lower downside risk [4]