Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. US stocks concluded a strong year with strong gains in Q4. In Q4, the portfolio’s performance was flat and narrowly trailed the Russell 2000® Growth Index. In 2024, the portfolio produced a robust absolute return that was in line with the Russell 2000® Growth Index but outperformed the Russell 2000 Index. In the quarter, its Investor Class fund ARTSX returned 0.61%, Advisor Class fund APDSX posted a return of 0.66%, and Institutional Class fund APHSX returned 0.67%, compared to a return of 1.70% for the Russell 2000 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
In its fourth quarter 2024 investor letter, Artisan Small Cap Fund emphasized stocks such as Tyler Technologies, Inc. (NYSE:TYL). Tyler Technologies, Inc. (NYSE:TYL) offers integrated information management solutions and services for the public sector. The one-month return of Tyler Technologies, Inc. (NYSE:TYL) was -6.63%, and its shares gained 33.22% of their value over the last 52 weeks. On March 10, 2025, Tyler Technologies, Inc. (NYSE:TYL) stock closed at $571.26 per share with a market capitalization of $24.572 billion.
Artisan Small Cap Fund stated the following regarding Tyler Technologies, Inc. (NYSE:TYL) in its Q4 2024 investor letter:
“We ended our investment campaigns in Argenx, Tyler Technologies, Inc. (NYSE:TYL) and Interparfums. Tyler Technologies provides end-to-end information management solutions and services for local government offices. Shares have rallied throughout the year due to strong earnings results, including the announcement of its first state wide cloud conversion, which we believe opens the door for more of these larger migrations. Like Argenx, we sold our position due to an elevated market cap after a long, successful investment campaign.”
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Tyler Technologies, Inc. (NYSE:TYL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Tyler Technologies, Inc. (NYSE:TYL) at the end of the fourth quarter compared to 40 in the third quarter. Tyler Technologies, Inc. (NYSE:TYL) reported revenue of 541.1 million in the fourth quarter, up 12.5% and organically grew 12.4%. While we acknowledge the potential of Tyler Technologies, Inc. (NYSE:TYL) 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 Tyler Technologies, Inc. (NYSE:TYL) and shared Polen US SMID Company Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q4 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.