Artisan Small Cap Fund Reduces Exposure to Waystar Holding Due to Slower Demand
In its second-quarter 2026 investor letter, Artisan Partners' Artisan Small Cap Fund highlighted a reduction in exposure to Waystar Holding Corp. (NASDAQ:WAY), citing slower-than-expected demand for certain volume-based solutions that weakened confidence in the company's profit cycle. The fund noted more compelling software investment opportunities had become available within its preferred market capitalization range. The broader small-cap equity environment saw strong returns, with investor classes of Artisan Small Cap Fund outperforming the Russell 2000® Growth Index by a slight margin. However, technology and healthcare stocks showed mixed performance; while health care was a top contributor to gains, software holdings like Waystar Holding underperformed despite solid fundamentals. Waystar Holding operates as a cloud-based revenue cycle management platform for over 30,000 U.S. healthcare organizations but has seen its stock price decline by nearly 38% in the past year and is currently trading at $21.58 per share.
Tickers: $WAY
Topics: healthcare_payments_software investment_fund small_cap_stocks