Core Insights - Artisan Small Cap Fund aims to invest in companies with franchise characteristics, strong earnings trajectories, and trading at a discount to estimated private market value [1] - The Fund experienced strong absolute returns in Q4 2025, outperforming both the Russell 2000® Growth Index and the Russell 2000® Index, despite elevated volatility and shifting market sentiment [1] - For the full year 2025, the Fund generated strong results but underperformed relative to both indexes [1] Company Focus: Parsons Corporation - Parsons Corporation (NYSE:PSN) is highlighted as a technology-driven engineering company focusing on defense, intelligence, and infrastructure markets [2][3] - As of March 16, 2026, Parsons Corporation's stock closed at $52.60 per share, with a one-month return of -14.35% and a 52-week loss of 12.45% [2] - The company has a market capitalization of $5.629 billion [2] - In Q4 2025, Parsons Corporation was among the detractors for the Fund, primarily due to losing a $12.5 billion FAA air traffic control modernization contract, which interrupted its recovery from previous cost-cutting pressures [3] - Despite this setback, the Fund remains invested in Parsons, citing its long-standing relationship with the FAA and potential for capturing significant portions of future programs [3]

Core Insights - Artisan Small Cap Fund aims to invest in companies with franchise characteristics, strong earnings trajectories, and trading at a discount to estimated private market value [1] - The Fund experienced strong absolute returns in Q4 2025, outperforming both the Russell 2000® Growth Index and the Russell 2000® Index, despite elevated volatility and shifting market sentiment [1] - For the full year 2025, the Fund generated strong results but underperformed relative to both indexes [1] - The market leadership in Q4 2025 shifted back to companies with durable profit cycles, and the firm plans to continue focusing on identifying profit cycles in franchise companies at reasonable valuations in 2026 [1] Company Focus: Cellebrite DI Ltd. - Cellebrite DI Ltd. is a digital forensics company that provides solutions to law enforcement, military, and other customers, with a market capitalization of $3.592 billion [2] - The stock of Cellebrite DI Ltd. closed at $14.40 per share on March 16, 2026, with a one-month return of 0.70% and a 52-week loss of 22.25% [2] - Artisan Small Cap Fund initiated a new position in Cellebrite DI Ltd. during Q4 2025, identifying a new product cycle that could transition the company from point solutions to a broader, integrated platform [3] - Expert calls reinforced the view of Cellebrite's durable franchise, although budget-related constraints on government spending created a temporary headwind in early 2025 [3] - Growth in the public sector segment is expected to resume in 2026 as budgets normalize [3]