Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund’s Investor Class fund ARTMX returned 2.35%, Advisor Class fund APDMX posted a return of 2.38%, and Institutional Class fund APHMX returned 2.40%, compared to a 6.54% return for the Russell Midcap Growth Index. Negative security selection within health care, information technology, and industrials led to the fund’s underperformance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Artisan Mid Cap Fund highlighted stocks like HubSpot, Inc. (NYSE:HUBS), in the third quarter 2024 investor letter. HubSpot, Inc. (NYSE:HUBS) offers a cloud-based customer relationship management (CRM) platform for businesses. The one-month return of HubSpot, Inc. (NYSE:HUBS) was 8.82%, and its shares gained 23.08% of their value over the last 52 weeks. On October 14, 2024, HubSpot, Inc. (NYSE:HUBS) stock closed at $548.21 per share with a market capitalization of $28.15 billion.
Artisan Mid Cap Fund stated the following regarding HubSpot, Inc. (NYSE:HUBS) in its Q3 2024 investor letter:
“Along with Dexcom and Celsius, a notable trim in the quarter wasHubSpot, Inc. (NYSE:HUBS). HubSpot is a leading cloud-based customer relationship management software provider for small-to-medium businesses. The stock was a top performer in 2023 as it meaningfully improved its profitability after several years of heavy investment. However, as we mentioned earlier in this letter, the environment for cloud software providers has been challenging in 2024 as macroeconomic pressures have impacted customer spending. Our long-term conviction remains intact, but we reduced the position due to near-term uncertainty. Meanwhile, we are encouraged by the company’s efforts to leverage AI advances to help internally (e.g., more efficient software development) and externally (e.g., new agent-based apps to help customers extract more value out of its products).”
A team of software developers gathered around a monitor discussing a new CRM platform.
HubSpot, Inc. (NYSE:HUBS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 80 hedge fund portfolios held HubSpot, Inc. (NYSE:HUBS) at the end of the second quarter which was 55 in the previous quarter. HubSpot, Inc.’s (NYSE:HUBS) second quarter revenue grew 21% year-over-year in constant currency. While we acknowledge the potential of HubSpot, Inc. (NYSE:HUBS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed HubSpot, Inc. (NYSE:HUBS) and shared the list of worst marketing stocks to buy. In addition, please check out our hedge fund investor letters Q3 2024 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.