Artisan International Fund's Strategic Positioning in Q3 2025: Capitalizing on Disruption in Tech, Defense, and Biotech

In a world increasingly defined by technological innovation, geopolitical tensions, and demographic shifts, the Artisan International Fund has demonstrated a disciplined approach to capital allocation in Q3 2025. By focusing on high-conviction stock selections and thematic exposure to long-term growth catalysts, the fund has positioned itself to benefit from structural trends in technology, defense, and biotech. This analysis examines how Artisan's strategic choices reflect a nuanced understanding of macroeconomic forces and sector-specific dynamics.

Technology: Bets on Global Leaders and Disruptive Innovation

Artisan's technology investments in Q3 2025 underscore its preference for companies with durable competitive advantages and scalable business models. A standout example is Tencent, a Chinese tech giant whose 15% year-over-year revenue growth and 18% operating profit increase highlight its resilience amid regulatory challenges. The fund's exposure to Tencent aligns with its thesis that digital ecosystems-encompassing fintech, gaming, and cloud computing-will remain central to global economic transformation.

Equally significant is Artisan's investment in Contemporary Amperex Technology (CATL), a leader in electric vehicle (EV) batteries. CATL's recent $5 billion Hong Kong listing underscores its accelerating market share in a sector poised for decades of growth as governments phase out internal combustion engines. By backing CATL, Artisan is not merely capitalizing on EV adoption but also hedging against supply-chain disruptions in critical materials like lithium and nickel.

Defense: Leveraging Geopolitical Uncertainty

The fund's defense portfolio in Q3 2025 reflects a clear-eyed assessment of persistent global instability. Hanwha Aerospace, a South Korean defense contractor, exemplifies this strategy. Its Q2 revenues surged 14% quarter-over-quarter and 169% year-over-year, driven by robust exports of land-based systems and orders from Europe and the Middle East. Artisan's increased holdings in L3Harris Technologies further reinforce its conviction in the sector, as the firm benefits from U.S. and allied spending on next-generation communication systems and cyber defenses.

This thematic focus is not speculative but rooted in structural demand. As defense budgets rise globally-spurred by conflicts in Eastern Europe and the Indo-Pacific-the fund's emphasis on firms with recurring revenue streams and high-margin contracts appears well timed.

Biotech: Targeting Therapeutic Breakthroughs

Artisan's biotech investments in Q3 2025 highlight its ability to identify companies at the forefront of medical innovation. UCB has delivered strong performance through its drugs Bimzelx® and Zilbrysq®, which address autoimmune and inflammatory diseases. Similarly, Galderma's competitive positioning in aesthetic and dermatological treatments has been reinforced by favorable market dynamics, including rising demand for non-invasive procedures.

The fund's inclusion of West Pharmaceutical Services adds a layer of diversification, as the firm supplies critical components for drug delivery systems. This move underscores Artisan's recognition that biotech growth is not limited to therapeutic innovation but also extends to the infrastructure enabling it.

Conclusion: A Portfolio for the Long Game

Artisan International Fund's Q3 2025 positioning demonstrates a rare combination of tactical agility and strategic foresight. By concentrating on high-conviction stocks like Tencent, CATL, and Hanwha Aerospace, the fund has aligned itself with industries undergoing fundamental transformation. These choices are not merely reactive to current trends but are designed to capture value over the long term, as technological, geopolitical, and demographic forces continue to reshape the global economy.

For investors seeking exposure to disruptive innovation without the volatility of speculative tech startups or the cyclicality of traditional defense contractors, Artisan's approach offers a compelling blueprint. The fund's ability to balance thematic exposure with rigorous stock selection is a testament to its management's deep understanding of the interplay between macroeconomic currents and corporate performance.