Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund’s Investor Class fund ARTMX returned 2.35%, Advisor Class fund APDMX posted a return of 2.38%, and Institutional Class fund APHMX returned 2.40%, compared to a 6.54% return for the Russell Midcap Growth Index. Negative security selection within health care, information technology, and industrials led to the fund’s underperformance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Artisan Mid Cap Fund highlighted stocks like Coherent Corp. (NYSE:COHR) in the third quarter 2024 investor letter. Coherent Corp. (NYSE:COHR) manufactures and distributes engineered materials and optoelectronic components and devices. The one-month return of Coherent Corp. (NYSE:COHR) was 24.13%, and its shares gained 209.29% of their value over the last 52 weeks. On October 15, 2024, Coherent Corp. (NYSE:COHR) stock closed at $100.52 per share with a market capitalization of $15.521 billion.
Artisan Mid Cap Fund stated the following regarding Coherent Corp. (NYSE:COHR) in its Q3 2024 investor letter:
“During the quarter, we initiated new GardenSM positions in CBRE Group, Tetra Tech and Coherent Corp. (NYSE:COHR). Coherent is a global leader in engineered materials, optoelectronic components and lasers. The company is experiencing strong AI-related demand for its data center optical networking products, which serves a key industry bottleneck as customers try to optimize the efficiency of their AI investments. We believe this AI exposure and an upturn in its more cyclical segments should lead to meaningful multiyear revenue growth. Meanwhile, we believe its new CEO, whom we know well from our campaign in Lattice Semiconductor, will drive meaningful change in the business, including divesting slow-growth business segments and driving much-needed operational improvements to unlock margin expansion opportunities.”
A row of precision industrial lasers in action, cutting the most intricate of shapes.
Coherent Corp. (NYSE:COHR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Coherent Corp. (NYSE:COHR) at the end of the second quarter which was 50 in the previous quarter. Coherent Corp.’s (NYSE:COHR) revenue reached $1.314 billion in the June quarter, up 9.1% from the previous year and 8.7% sequentially. While we acknowledge the potential of Coherent Corp. (NYSE:COHR) 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 Coherent Corp. (NYSE:COHR) and shared Goldman Sachs’ best phase 2 AI stock picks. NCG Small Cap Strategy added Coherent Corp. (NYSE:COHR) to its portfolio in Q2 2024, due to its confidence in the newly appointed CEO. In addition, please check out our hedge fund investor letters Q3 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.