Artisan Partners Sold its Smartsheet (SMAR) Stake, Here’s Why

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 Smartsheet Inc. (NYSE: SMAR) and discussed its stance on the firm. Smartsheet Inc. is a Bellevue, Washington-based software company with an $8.3 billion market capitalization. SMAR delivered a -4.83% return since the beginning of the year, while its 12-month returns are up by 7.12%. The stock closed at $65.94 per share on December 03, 2021.

Here is what Artisan Small Cap Fund has to say about Smartsheet Inc.  in its Q3 2021 investor letter:

“Smartsheet is a highly customizable cloud-based workflow management tool enabling automation and increased productivity across several organizational functions, including information technology, human resources, sales, marketing, operations, finance, etc. Smartsheet replaces traditional workflow management tools and can integrate with numerous third-party software applications (Microsoft Teams, Tableau, Slack and others). A year into our investment campaign, a lack of acceleration in the company’s key performance indicators (KPIs) and the threat of increasing competition inhibited us from making this a CropSM position. Furthermore, other holdings in our portfolio have clearer profit cycle paths.”

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Based on our calculations, Smartsheet Inc. (NYSE: SMAR) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. SMAR was in 50 hedge fund portfolios at the end of the third quarter of 2021, compared to 49 funds in the previous quarter. Smartsheet Inc. (NYSE: SMAR) delivered a -21.28% return in the past 3 months.

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