Here’s Why Artisan Global Value Fund Exited Advance Auto Parts (AAP)

Artisan Partners, an investment management company, released its “Artisan Global Value Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, its Investor Class fund ARTGX returned 5.88%, Advisor Class fund APDGX posted a return of 5.89%, and Institutional Class fund APHGX returned 5.92%, compared to a return of 6.18% for the MSCI All Country World Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Artisan Global Value Fund highlighted stocks like Advance Auto Parts, Inc. (NYSE:AAP) in the second quarter 2023 investor letter. Based in Raleigh, North Carolina, Advance Auto Parts, Inc. (NYSE:AAP) is an automotive replacement parts and accessories provider. On September 20, 2023, Advance Auto Parts, Inc. (NYSE:AAP) stock closed at $60.12 per share. One-month return of Advance Auto Parts, Inc. (NYSE:AAP) was -11.47%, and its shares lost 63.37% of their value over the last 52 weeks. Advance Auto Parts, Inc. (NYSE:AAP) has a market capitalization of $3.575 billion.

Artisan Global Value Fund made the following comment about Advance Auto Parts, Inc. (NYSE:AAP) in its Q2 2023 investor letter:

“Our worst performing stocks this quarter were Alibaba, Advance Auto Parts, Inc. (NYSE:AAP) and Progressive. Advance Auto shares declined 40% as the company continues to underperform its peer group. It also reset its growth and profitability outlook. The business now expects to have flat revenue growth and 5% margins this year. This compares to 4%–5% growth and 20% margins for its primary competitor. The company’s planned turnaround has largely failed, with expected profits this year to be lower than they were when now-departing CEO Tom Greco took over in 2016. Given the poor operational performance, we exited our position during the quarter.”

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Advance Auto Parts, Inc. (NYSE:AAP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Advance Auto Parts, Inc. (NYSE:AAP) at the end of second quarter which was 38 in the previous quarter.

We discussed Advance Auto Parts, Inc. (NYSE:AAP) in another article and shared the list of worst performing dividend stocks year-to-date. In addition, please check out our hedge fund investor letters Q2 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.