Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, its Investor Class fund ARTMX returned -2.43%, Advisor Class fund APDMX posted a return of -2.42%, and Institutional Class fund APHMX returned -2.41%, compared to a return of -0.65% for the Russell Midcap Growth Index. Sector allocation dragged the fund’s relative performance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.
In the third-quarter letter, Artisan Partners discussed stocks like Catalent, Inc. (NYSE:CTLT). Headquartered in Somerset, New Jersey, Catalent, Inc. (NYSE:CTLT) provides solutions for drugs, protein-based biologics, cell and gene therapies, and consumer health products. On November 11, 2022, Catalent, Inc. (NYSE:CTLT) stock closed at $47.18 per share. One-month return of Catalent, Inc. (NYSE:CTLT) was -36.55%, and its shares lost 63.20% of their value over the last 52 weeks. Catalent, Inc. (NYSE:CTLT) has a market capitalization of $8.491 billion.
Artisan Partners made the following comment about Catalent, Inc. (NYSE:CTLT) in its Q3 2022 investor letter:
“Among our bottom contributors were Catalent, Inc. (NYSE:CTLT), Match Group and Veeva Systems. Shares of Catalent underperformed during Q3 as management issued 2023 guidance below expectations given a sharper-than-expected decline in COVID-19 vaccine sales, which are expected to fall as much as two-thirds. Still, total sales are likely to grow this year, which implies the trends in the rest of the business (gene therapy, gummi vitamins, sterile packaging) are accelerating. It could take several quarters to prove the company can achieve its targets, and investors seem to be taking a wait-and-see approach.
Despite 2023 being a transition year after the bolus of vaccine sales during the pandemic, our confidence in Catalent’s long-term profit cycle remains high. The increasing use and complexity of biologics and the growing proportion of small companies taking products to market are driving outsourcing to companies like Catalent to reduce cost. Catalent’s investments to increase its capabilities in cell and gene therapies and gummi vitamins give us further confidence. Lastly, we are increasingly optimistic the FDA will approve a key customer’s gene therapy product next year, which could serve as a catalyst for Catalent’s viral vector manufacturing business. We used Q3’s share weakness to add to our position.”
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Catalent, Inc. (NYSE:CTLT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Catalent, Inc. (NYSE:CTLT) at the end of the second quarter, which was 34 in the previous quarter.
We discussed Catalent, Inc. (NYSE:CTLT) in another article and shared ClearBridge Investments’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 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.
