Artisan Partners, a high value-added investment management firm, published its ‘Artisan Small Cap Fund’ second quarter 2021 investor letter – a copy of which can be downloaded here. A return of 4.36% was recorded by its Investor Class: ARTSX, 4.40% by its Advisor Class: APDSX, and 4.41% by its Institutional Class: APHSX for the second quarter of 2021, all above the Russell 2000® Growth Index that delivered a 3.92% return and the Russell 2000® Index that was up by 4.29% for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their top bets for 2021.
In the Q2 2021 investor letter of Artisan Partners, the fund mentioned John Bean Technologies Corporation (NYSE: JBT) and discussed its stance on the firm. John Bean Technologies Corporation is a Chicago, Illinois-based food processing machinery and airport equipment company with a $4.7 billion market capitalization. JBT delivered a 30.91% return since the beginning of the year, while its 12-month returns are up by 47.13%. The stock closed at $149.07 per share on September 3, 2021.
Here is what Artisan Partners has to say about John Bean Technologies Corporation in its Q2 2021 investor letter:
“John Bean is a leading provider of technology solutions for the foodprocessing and air-transportation industries. With the bulk of the company’s revenue (~70%) derived from its food-processing business, we believe it is well-positioned to help the industry accelerate automation (currently highly labor intensive) on the other side of the pandemic. That said, we ended our successful campaign in Q2 with shares approaching our estimate of private market value and in favor of more compelling ideas in our pipeline.”
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Based on our calculations, John Bean Technologies Corporation (NYSE: JBT) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. JBT was in 19 hedge fund portfolios at the end of the first half of 2021, compared to 21 funds in the previous quarter. John Bean Technologies Corporation (NYSE: JBT) delivered a 2.47% return in the past 3 months.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage.
Disclosure: None. This article is originally published at Insider Monkey.
