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Artisan Partners, an investment management company, released its second-quarter 2026 investor commentary for the "Artisan Global Opportunities Strategy". The letter can be downloaded here. Global equities rebounded sharply during the quarter, with the MSCI ACWI Index returning 15.3% as resilient economic growth, strong corporate earnings, and continued enthusiasm around artificial intelligence supported markets despite persistent inflation, higher bond yields, and geopolitical uncertainty. The portfolio reported strong absolute returns of 12.65% (net) but underperformed the benchmark, mainly because of its underweight exposure to information technology and overweight position in health care. Strong stock selection in technology and energy partially offset these headwinds. The fund continues to see attractive long-term opportunities across AI infrastructure, health care and consumer internet, while remaining disciplined on valuation as several AI-related stocks have appreciated sharply. Management remains focused on durable franchises with identifiable profit cycles and attractive long-term earnings potential. Also, check the Strategy's top five holdings to see its best picks in 2026.

In its second-quarter 2026 investor letter, Artisan Global Opportunities Fund highlighted L3Harris Technologies, Inc. (NYSE:LHX). L3Harris Technologies, Inc. (NYSE:LHX) provides mission-critical solutions for government and commercial customers worldwide. On September 01, 2026, L3Harris Technologies, Inc. (NYSE:LHX) closed at $263.56 per share. Over the past month, L3Harris Technologies, Inc. (NYSE:LHX) declined 8.44%, and its shares lost 4.08% over the past 52 weeks. L3Harris Technologies, Inc. (NYSE:LHX) has a market capitalization of $48.76 billion.

Artisan Global Opportunities Fund stated the following regarding L3Harris Technologies, Inc. (NYSE:LHX) in its Q2 2026 investor letter:

"L3Harris Technologies, Inc. (NYSE:LHX) is a global aerospace and defense company that we believe remains well positioned to benefit from growing investment in next-generation missile defense, space sensing and national security programs. Recent results exceeded expectations, with 15% organic growth driven by continued strength in its space and mission systems and missile solutions segments. Order activity remained healthy, with backlog reaching $41 billion and international demand accelerating. Despite the solid operating performance, shares declined amid concerns over future competition and the potential implications for long-term market share. While strong bookings and accelerating revenue continue to support our long-term investment thesis, we began harvesting the position as we reallocated capital within the industrials sector."

L3Harris Technologies, Inc. (NYSE:LHX) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held L3Harris Technologies, Inc. (NYSE:LHX) at the end of the second quarter which was 59 in the previous quarter. While we acknowledge the potential of L3Harris Technologies, Inc. (NYSE:LHX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered L3Harris Technologies, Inc. (NYSE:LHX) and shared Sycamore Mid Cap Value Equity Strategy's insights on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.