Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the fund’s Investor Class fund ARTMX returned 5.11%, Advisor Class fund APDMX posted a return of 5.14%, and Institutional Class fund APHMX returned 5.14%, compared to an 8.14% return for the Russell Midcap Growth Index. US equities achieved solid Q4 gains, concluding a strong year. Following Donald Trump’s election win, optimism surged over deregulation and tax cuts. However, concerns about inflation from proposed tariffs and immigration policies emerged in December, introducing market volatility. Despite this, markets ended 2024 with strong gains, marking one of the best two-year performance stretches in decades. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Artisan Mid Cap Fund emphasized stocks such as Monolithic Power Systems, Inc. (NASDAQ:MPWR). Monolithic Power Systems, Inc. (NASDAQ:MPWR) is a semiconductor-based power electronics solutions provider. The one-month return of Monolithic Power Systems, Inc. (NASDAQ:MPWR) was -11.79%, and its shares lost 19.33% of their value over the last 52 weeks. On March 3, 2025, Monolithic Power Systems, Inc. (NASDAQ:MPWR) stock closed at $578.92 per share with a market capitalization of $27.686 billion.
Artisan Mid Cap Fund stated the following regarding Monolithic Power Systems, Inc. (NASDAQ:MPWR) in its Q4 2024 investor letter:
“Among our top detractors were Monolithic Power Systems, Inc. (NASDAQ:MPWR), Xylem and Exact Sciences. Monolithic Power Systems designs analog power management chips for a wide variety of industrial and consumer devices. Shares declined after the company reported strong growth in its data center segment that trailed investors’ lofty expectations, which had driven the stock up YTD. Also, while the segment is expected to grow in 2025, the company will face some temporary headwinds as additional power semiconductor suppliers are expected to be qualified to supply NVIDIA’s GPU needs. While we’re cognizant of this headwind in 2025, we expect it to be manageable, and the company has other meaningful growth drivers in store for the year (particularly in autos). Our valuation discipline had led us to reduce the position earlier in the year, but given a more reasonable starting point in Q4, we decided to add to the position.”
An engineer examining a DC to DC integrated circuit board, looking for any flaws.
Monolithic Power Systems, Inc. (NASDAQ:MPWR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Monolithic Power Systems, Inc. (NASDAQ:MPWR) at the end of the fourth quarter compared to 38 in the third quarter. Monolithic Power Systems, Inc. (NASDAQ:MPWR) reported record quarterly revenue of $621.7 million in the fourth quarter of 2024, up 37% from Q 2023. While we acknowledge the potential of Monolithic Power Systems, Inc. (NASDAQ:MPWR) 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 Monolithic Power Systems, Inc. (NASDAQ:MPWR) and shared the list of tech stocks with high upside potential. 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.