Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, its Investor Class fund ARTSX returned -21.52%, Advisor Class fund APDSX posted a return of -21.48%, and Institutional Class fund APHSX returned -21.47%, compared to a return of -19.25% for the Russell 2000 Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.
In the second quarter 2022 investor letter, Artisan Partners discussed stocks like The AZEK Company Inc. (NYSE:AZEK). Headquartered in Chicago, Illinois, The AZEK Company Inc. (NYSE:AZEK) engages in the business of building products. On September 28, 2022, The AZEK Company Inc. (NYSE:AZEK) stock closed at $16.78 per share. One-month return of The AZEK Company Inc. (NYSE:AZEK) was -8.05% and its shares lost 54.48% of their value over the last 52 weeks. The AZEK Company Inc. (NYSE:AZEK) has a market capitalization of $2.553 billion.
Here is what Artisan Partners specifically said about The AZEK Company Inc. (NYSE:AZEK) in its Q2 2022 investor letter:
“The AZEK Company Inc. (NYSE:AZEK) is the second-largest designer and manufacturer of composite decking and railings. Our thesis has been predicated on the company capturing share from the wooden deck market, which is ~80% of the volume sold. AZEK’s products are superior to wood as they are maintenance free throughout their useful lives, and they carry 25-year performance and 50-year color warranties. The company’s recent quarterly results demonstrated solid top-line growth and no signs of distributor or consumer pullback in composite decking. Despite this, shares were weaker on fears the rise in mortgage rates could significantly curtail demand for the company’s outdoor products. Furthermore, the inflationary environment may make it difficult for AZEK to pass along price increases to its customers to maintain its margin profiles. While we share these consumer related concerns, we believe the longer-term composite decking profit cycle potential remains compelling. That said, we exited our position in favor of another composite decking provider in our portfolio, Trex, who we believe has stronger franchise characteristics—leading provider of alternative decking (AZEK is #2), a unique ability to utilize recycled materials to produce a low-cost product and strong brand awareness—and whose profit cycle we believe could prove more durable over the near-to-intermediate term.”
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The AZEK Company Inc. (NYSE:AZEK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held The AZEK Company Inc. (NYSE:AZEK) at the end of the second quarter which was 33 in the previous quarter.
We discussed The AZEK Company Inc. (NYSE:AZEK) in another article and shared Baron Funds’ views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.
When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.
Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.
At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.
Do the math. According to Musk, this technology could be worth $250 trillion by 2040.
Put another way, that’s roughly equal to:
175 Teslas
107 Amazons
140 Metas
84 Googles
65 Microsofts
And 55 Nvidias
And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.
It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.
Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.
How could anything be worth that much?
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In fact, Verge argues this company’s supercheap AI technology should concern rivals.
Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.
Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.
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Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…
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