Unearthing Value in a Dynamic World: Artisan Global Discovery Fund Reflects on Q1 2026

Well, here we are, reflecting on what was a truly fascinating first quarter of 2026 for global markets. It felt like a period where optimism and caution walked hand-in-hand, often within the very same news cycle! For the Artisan Global Discovery Fund, Q1 presented a rich tapestry of opportunities and, let’s be honest, a few of those inevitable headwinds that keep us on our toes. We’re pleased to share our perspective on the past three months, outlining the landscape we navigated and the strategic decisions that shaped the fund’s journey.

Globally, the economic narrative continued to evolve, didn't it? We saw a persistent — though perhaps slightly moderating — strength in certain innovation-driven sectors, particularly those tied to advancements in artificial intelligence and sustainable technologies. Yet, lurking beneath the surface, or sometimes right out in the open, were ongoing concerns about inflation’s stickiness in various regions and the ever-present geopolitical complexities that can send ripples across supply chains and investor sentiment. Developed markets, especially the U.S., seemed to maintain a resilient footing, while some emerging economies experienced a bit more volatility, as is often the case when global currents shift.

Against this dynamic backdrop, the Artisan Global Discovery Fund delivered a solid performance during Q1. We’re always looking for those compelling, high-quality growth companies with sustainable competitive advantages, the ones that are truly disrupting industries or creating new ones entirely. And honestly, this quarter truly underscored the value of that focused, fundamental research approach. While the broader market, particularly some of the larger indices, saw healthy gains, our portfolio companies, chosen for their distinct attributes and long-term potential, largely held their own and, in many cases, contributed positively to the fund’s overall results. Of course, no quarter is without its specific challenges; a few positions, for various company-specific or regional reasons, faced some pressure. But that’s the nature of discovery, isn’t it? Not every unearthed gem shines immediately, but we remain confident in our disciplined process.

So, what really drove performance? Well, it was a combination of factors, as it usually is. Our holdings in innovative healthcare solutions, particularly those pushing the boundaries in biotech and medical devices, continued to show remarkable resilience and growth. Similarly, several of our technology investments, especially those focused on enterprise software and specialized semiconductor solutions, truly demonstrated their robust business models. We also saw some positive contributions from select industrial companies that are uniquely positioned to benefit from global infrastructure upgrades and automation trends. It’s a testament, really, to the diverse sources of innovation we strive to capture – not just the obvious headlines, but the underlying engines of progress.

Looking ahead, we maintain a cautiously optimistic, yet always vigilant, outlook. We believe the coming quarters will continue to present a mixed picture globally. Inflationary pressures might ease in some areas, but certainly not disappear entirely, and central banks will likely remain quite data-dependent in their policy decisions. Geopolitical events, as always, bear watching closely. But for us, the strategy remains unchanged, steadfast even. We’re not chasing fads or trying to time the market; instead, we are relentlessly focused on identifying and investing in those exceptional businesses with clear, sustainable competitive advantages, strong management teams, and the capacity for long-term compounding growth. It’s about patience, conviction, and a deep understanding of what truly drives value over time.

Our commitment to discovering the world's most innovative and well-managed companies, regardless of where they are listed, is unwavering. We appreciate your continued trust and partnership as we navigate these fascinating and sometimes unpredictable global markets together. Rest assured, our team is as dedicated as ever to rigorous research and thoughtful portfolio construction, all aimed at delivering long-term value for our investors. Thank you for being with us on this journey.