Here’s Why Artisan Partners Became Attracted in JFrog Ltd. (FROG)

Artisan Partners, a high value-added investment management firm, published its ‘Artisan Mid Cap Fund’ fourth quarter 2021 investor letter – a copy of which can be downloaded here. A return of -0.72% was recorded by its Investor Class: ARTMX, -0.68% by its Advisor Class: APDMX, and -0.66% by its Institutional Class: APHMX, in the fourth quarter of 2021, all underperforming the Russell Midcap® Growth Index that delivered a 2.85% return, and the Russell Midcap® Index that was up by 6.44% for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Artisan Mid Cap Fund, in its Q4 2021 investor letter, mentioned JFrog Ltd. (NASDAQ: FROG) and discussed its stance on the firm. JFrog Ltd. is a Sunnyvale, California-based software company with a $2.2 billion market capitalization. FROG delivered a -22.76% return since the beginning of the year, while its 12-month returns are down by -22.76%. The stock closed at $22.94 per share on February 22, 2022.

Here is what Artisan Mid Cap Fund has to say about JFrog Ltd. in its Q4 2021 investor letter:

“JFrog is the market leader in continuous software release management (CSRM), which enables a faster cadence of developing, securing and releasing software to customers and devices (servers, PCs, smartphones, automobiles, Internet of things) to ensure users have the most up-to-date security and features. When we initiated our GardenSM position, we were attracted to the company’s leadership
position in CSRM, the quality of its product offering and a sizable, growing addressable market. While the company’s growth has been adequate over the course of our investment campaign, its profit cycle momentum has lagged many of our other software holdings, leading us to exit our position during the quarter in favor of more attractive opportunities.”

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Our calculations show that JFrog Ltd. (NASDAQ: FROG) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. FROG was in 23 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 20 funds in the previous quarter. JFrog Ltd. (NASDAQ: FROG) delivered a -33.51% return in the past 3 months.

In March 2021, we also shared another hedge fund’s views on FROG in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.