What Happened?
Shares of asset management firm Artisan Partners (NYSE: APAM) fell 3.9% in the afternoon session after the company disclosed that a large institutional client pulled $2.7 billion from its funds in early December. The asset manager announced the major redemption as part of its preliminary assets under management (AUM) report for November 2025. The report also noted other outflows, including approximately $800 million in fund distributions that were not reinvested in November, with another $400 million expected in December. For an asset management firm like Artisan Partners, AUM is a critical measure of health, as its fees are based on the total assets it manages. Significant redemptions and outflows can signal challenges in keeping clients and may lead to a drop in future revenue.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Artisan Partners? Access our full analysis report here.
What Is The Market Telling Us
Artisan Partners’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock gained 3.4% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
Artisan Partners is down 5.4% since the beginning of the year, and at $40.20 per share, it is trading 17.1% below its 52-week high of $48.48 from December 2024. Investors who bought $1,000 worth of Artisan Partners’s shares 5 years ago would now be looking at an investment worth $841.60.
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