5 Mid-Cap Stocks Hedge Funds Are Talking About

3. Peloton Interactive, Inc. (NASDAQ:PTON)

Market Cap as of March 11, 2022: $7.4 billion

Number of Hedge Fund Holders: 60

Artisan Partners, a high value-added investment management firm, published its ‘Artisan Mid Cap Fund’ fourth quarter 2021 investor letter – a copy of which can be downloaded here. A slim loss of 0.72% was recorded by its Investor Class: ARTMX, while a 0.68% dip was recorded by its Advisor Class: APDMX, and a 0.66% drop by its Institutional Class: APHMX, during the fourth quarter of 2021, all underperforming the Russell Midcap® Growth Index, which delivered a 2.85% return, and the Russell Midcap® Index, which was up by 6.44% for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Artisan Mid Cap Fund, in its Q4 2021 investor letter, mentioned Peloton Interactive, Inc. (NASDAQ:PTON) and discussed its stance on the firm. Peloton Interactive, Inc. (NASDAQ:PTON) is a New York, New York-based exercise equipment company with a $7.0 billion market capitalization. Peloton Interactive, Inc. (NASDAQ:PTON) shares are 40.88% in the red since the beginning of the year, while its 12-month losses are an unsightly 81.05%. The stock closed at $21.14 per share on March 11, 2022.

Here is what Artisan Mid Cap Fund had to say about Peloton Interactive, Inc. (NASDAQ:PTON) in its Q4 2021 investor letter:

“We ended our campaigns in Peloton Interactive, Inc. (NASDAQ:PTON). Peloton Interactive, Inc. (NASDAQ:PTON) is a connected fitness franchise known for its stationary exercise bikes that provide live and on-demand cycling classes. When we trimmed our position in 1Q21, we believed the stock’s valuation was reflecting relatively aggressive assumptions about post-pandemic membership growth. However, we underestimated just how much growth would slow by midyear. A seemingly slow launch of the new Peloton Interactive, Inc. (NASDAQ:PTON) treadmill combined with meaningful price cuts on the bike are erasing the company’s margin progress of 2020, resulting in meaningful short-term losses. While we remain optimistic about the company’s long-term potential, we harvested our position given the negative profit cycle dynamics.”