Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, its Investor Class fund ARTSX returned -7.98%, Advisor Class fund APDSX posted a return of -7.96%, and Institutional Class fund APHSX returned -7.97%, compared to a return of -7.32% for the Russell 2000 Growth Index. From a sector perspective, allocation impacts drove the sector’s underperformance, while security selection was positive. From an allocation perspective, the portfolio was hurt by its lack of exposure to energy and overweight exposure to health care. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Artisan Small Cap Fund highlighted stocks like Advanced Drainage Systems, Inc. (NYSE:WMS) in the Q3 2023 investor letter. Headquartered in Hilliard, Ohio, Advanced Drainage Systems, Inc. (NYSE:WMS) is a thermoplastic corrugated pipe manufacturer. On December 1, 2023, Advanced Drainage Systems, Inc. (NYSE:WMS) stock closed at $125.47 per share. One-month return of Advanced Drainage Systems, Inc. (NYSE:WMS) was 12.22%, and its shares gained 39.41% of their value over the last 52 weeks. Advanced Drainage Systems, Inc. (NYSE:WMS) has a market capitalization of $9.775 billion.
Artisan Small Cap Fund made the following comment about Advanced Drainage Systems, Inc. (NYSE:WMS) in its Q3 2023 investor letter:
“Notable trims in the quarter included Papa John’s, Advanced Drainage Systems, Inc. (NYSE:WMS) and BlackLine. Advanced Drainage Systems manufactures high-performance thermoplastic corrugated pipe and related products for non-residential construction, residential construction, agriculture and infrastructure markets throughout North America. Its products cover all aspects of storm-water drainage—capturing stormwater, transporting stormwater to a storage tank and treating the water (if needed) before redistributing the water back into the water table. Shares have struggled this year as end markets have softened faster than anticipated, especially its residential business where rising interest rates have cooled construction activity. We still believe it is well positioned to capitalize on the long-term shift in the pipe industry away from concrete and toward plastic materials, which are typically greener and more durable. However, we reduced our position and will wait for the cyclical pressures to wane.”
A research engineer conducting a test of the strength of a new thermoplastic composite.
Advanced Drainage Systems, Inc. (NYSE:WMS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Advanced Drainage Systems, Inc. (NYSE:WMS) at the end of third quarter which was 30 in the previous quarter.
We discussed Advanced Drainage Systems, Inc. (NYSE:WMS) in another article and shared Artisan Partners’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2023 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.
