Artisan Partners, an investment management company, released its “Artisan Global Equity Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, its Investor Class fund ARTHX returned 15.95%, Advisor Class fund APDHX posted a return of 15.98%, and Institutional Class fund APHHX returned 16.04%, compared to a return of 9.76% for the MSCI All Country World Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Artisan Global Equity Fund highlighted stocks like Darling Ingredients Inc. (NYSE:DAR) in the Q4 2022 investor letter. Headquartered in Irving, Texas, Darling Ingredients Inc. (NYSE:DAR) produces natural ingredients from edible and inedible bio-nutrients. On March 16, 2023, Darling Ingredients Inc. (NYSE:DAR) stock closed at $53.93 per share. One-month return of Darling Ingredients Inc. (NYSE:DAR) was -18.96%, and its shares lost 26.70% of their value over the last 52 weeks. Darling Ingredients Inc. (NYSE:DAR) has a market capitalization of $8.626 billion.
Artisan Global Equity Fund made the following comment about Darling Ingredients Inc. (NYSE:DAR) in its Q4 2022 investor letter:
“Conversely, our stock selection in consumer staples reduced relative performance during the period. In particular, Darling Ingredients Inc. (NYSE:DAR) finished lower after the US Environmental Protection Agency announced its proposed renewable identification numbers (RINs) under the Biden administration’s Renewable Fuel Standards, a trading and enforcement program designed to support renewable fuels. RINs are environmental credits. The goal of the program is to reduce greenhouse gas emissions and expand the nation’s renewable fuel sector while reducing reliance on imported oil. The proposed increases to the mandated volumes for this program were lower than they have been historically, although they will likely be revised over time. This weighed on renewable stock valuations. With 250 plants in 17 countries, Darling Ingredients is the largest publicly traded company turning food waste into sustainable products. Its main business is collecting animal by-products and converting them into food ingredients, animal feed and biofuels. In our opinion, its most valuable assets are those associated with its Diamond Green Diesel joint venture with Valero Energy in which it turns used cooking oil into diesel fuel. We like the strong earnings growth we’ve seen from this company along with its industry-leading return on equity and reasonable valuation. In addition, we value the company’s optionality for moving more of its animal by-products into diesel fuel production as energy prices continue to climb.”
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Darling Ingredients Inc. (NYSE:DAR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Darling Ingredients Inc. (NYSE:DAR) at the end of the fourth quarter which was 35 in the previous quarter.
We discussed Darling Ingredients Inc. (NYSE:DAR) in another article and shared the list of undervalued mid-cap stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.
