Company Overview - Cognex is a pure-play machine vision company specializing in embedded software, high-speed cameras, and machine vision systems for factory automation and logistics [2][3] - The company has a global footprint, with approximately 40% of its business in the Americas, 20% in Europe, and 40% in Asia [3] Industry Position - Cognex positions itself as a technology leader in the machine vision space, emphasizing its expertise and innovation in the industry [3]

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]

Core Viewpoint - Activist investor Engaged Capital has acquired a significant stake in Cognex and is advocating for cost-cutting measures and the engagement of cost consultants to enhance the company's stock price [1] Company Summary - Engaged Capital is pushing Cognex, a manufacturer of machine vision systems, to implement cost reduction strategies [1] - The involvement of Engaged Capital indicates a potential shift in Cognex's operational strategy aimed at improving financial performance [1]