Artisan Partners Projects a Bright Future in Silvergate Capital (SI)

Artisan Partners, a high value-added investment management firm, published its ‘Artisan Small Cap Fund’ third quarter 2021 investor letter – a copy of which can be downloaded here. A return of -1.20% was recorded by its Investor Class: ARTSX, -1.17% by its Advisor Class: APDSX, and -1.13% by its Institutional Class: APHSX for the third quarter of 2021, all above the Russell 2000® Growth Index that delivered a -5.65% return and the Russell 2000® Index that was down by -4.36% for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Artisan Small Cap Fund, in its Q3 2021 investor letter, mentioned Silvergate Capital Corporation (NYSE: SI) and discussed its stance on the firm. Silvergate Capital Corporation is a La Jolla, California-based bank holding company with a $4.3 billion market capitalization. SI delivered a 120.98% return since the beginning of the year, while its 12-month returns are up by 287.56%. The stock closed at $164.21 per share on December 03, 2021.

Here is what Artisan Small Cap Fund has to say about Silvergate Capital Corporation  in its Q3 2021 investor letter:

“Silvergate Capital is the leading regulated provider of traditional banking solutions to the digital currency industry (DCI). Notable customers include Coinbase, Paxos, Circle, Binance, Gemini, Jane Street, Fidelity, ICE, PayPal and the CME Group. We believe the company is well positioned to grow as digital assets become an increasing part of the economy. As a bridge between regulated financial markets and the crypto industry, Silvergate has established itself as a core infrastructure layer for trading digital assets. The company provides regulated banking services to the DCI to capture low-cost funding deposits, which can be monetized through its securities and loan portfolio. As of Q3, the company had $11 billion of deposits from over 1,300 digital currency customers and processed $600 million in transaction volumes over the last 12 months through the Silvergate Exchange Network (SEN). Today, the majority of SEN transactions are not being monetized to reduce friction of growing the network; however, we believe this could become an additional profit cycle driver over time as new products are launched or if the technology is adopted for use cases such as cross-border remittance or commerce.”

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Based on our calculations, Silvergate Capital Corporation (NYSE: SI) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. SI was in 32 hedge fund portfolios at the end of the third quarter of 2021, compared to 31 funds in the previous quarter. Silvergate Capital Corporation (NYSE: SI) delivered a 36.10% return in the past 3 months.

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