Artisan Partners released its second-quarter 2025 investor letter, with their Small Cap Fund posting returns of 7.30-7.36%. Global markets experienced volatility, shifting from deep declines to strong gains. The fund highlighted Guidewire Software, Inc. (NYSE:GWRE), a platform for P&C insurance companies, with a one-month return of -5.82% and shares gaining 45.15% over the last 52 weeks.

In the second quarter investor letter, Artisan Small Cap Fund mentioned trimming positions in Guidewire Software, Inc. (NYSE:GWRE) due to its transition to a subscription-based cloud service. The company is a market leader in P&C insurance software, with accelerating profit growth. Despite optimism, they reduced their position due to increasing market capitalization nearing their small-cap mandate limits.

Guidewire Software, Inc. (NYSE:GWRE) is not among the 30 Most Popular Stocks Among Hedge Funds, with 67 hedge fund portfolios holding it at the end of the second quarter. While acknowledging its potential, some AI stocks offer greater upside potential with less downside risk. For an undervalued AI stock benefiting from Trump-era tariffs and the onshoring trend, check out a free report on the best short-term AI stock.

Read more at Yahoo Finance: Here’s Why Artisan Small Cap Fund Trimmed Guidewire Software (GWRE)