Artisan Partners released its third-quarter 2025 investor letter, showcasing strong returns for its small-cap funds. Global equities rallied, with major US indices reaching record highs. The fund’s Investor, Advisor, and Institutional Class funds all posted positive returns compared to the Russell 2000 Growth Index.

In its investor letter, Artisan Small Cap Fund highlighted Cognex Corporation (NASDAQ:CGNX), a leader in machine vision products for manufacturing and distribution automation. The stock had a one-month return of -25.46% and closed at $35.98 per share on November 17, 2025, with a market cap of $6.03 billion.

Artisan Small Cap Fund detailed its investment thesis for Cognex Corporation (NASDAQ:CGNX) in its third-quarter 2025 letter. The company’s focus on new management, AI advancements, and potential market recovery drove the decision to invest in Cognex. The fund initiated a new position in Cognex during the quarter, citing strong growth potential.

Cognex Corporation (NASDAQ:CGNX) saw increased hedge fund interest in the second quarter, with 41 portfolios holding the stock. In the third quarter of 2025, the company reported revenue of $277 million, up 18% year-over-year. While Cognex has investment potential, other AI stocks may offer greater upside with less risk, according to insidermonkey.com.

Read more at Yahoo Finance: What Makes Cognex Corporation (CGNX) an Investment Bet?