Artisan Partners, an investment management company, released its “Artisan Value Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund outperformed the Russell 1000 Value Index. Its Investor Class fund ARTLX returned 14.04%, Advisor Class fund APDLX posted a return of 14.14%, and Institutional Class fund APHLX returned 14.10% in the quarter, compared to a 12.42% return for the benchmark index. Positive stock selection led to the outperformance of the fund in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Artisan Value Fund highlighted stocks like Meta Platforms, Inc. (NASDAQ:META) in the Q4 2022 investor letter. Headquartered in Menlo Park, California, Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. On March 1, 2023, Meta Platforms, Inc. (NASDAQ:META) stock closed at $173.42 per share. One-month return of Meta Platforms, Inc. (NASDAQ:META) was -8.13%, and its shares lost 14.56% of their value over the last 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a market capitalization of $449.616 billion.
Artisan Value Fund made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q4 2022 investor letter:
“At the individual stock level, our biggest detractors in 2022 were aforementioned Alphabet, Meta Platforms, Inc. (NASDAQ:META) and Philips. With regard to Meta, in addition to its challenges from increased TikTok competition and Apple’s privacy changes, the company’s pivot toward the Metaverse virtual reality project has been met with skepticism, particularly given its ramp-up in spending that has caused free cash flow to plunge. The stock had a small bounce in Q4 off the lows triggered by management recognizing it must reduce hiring and spending plans as the top-line growth it had extrapolated from 2020- 2021 has not materialized. By announcing layoffs and reduced spending, management has finally begun to address the problem. While we don’t minimize the company’s issues, the stock price had fallen over 70%, resulting in a highly favorable reward to risk profile. Meta now trades at a meaningful discount to the S&P 500® Index, both on price to earnings and enterprise value to EBIT—but we don’t believe Meta’s issues are necessarily worse than those of the rest of the market. Thus, we actively added to our position in Q4. Meta is still a highly successful enterprise generating $111 billion of revenue annually on a run-rate basis and has more than $40 billion in cash on its balance sheet to help it navigate its future course.”
Meta Platforms, Inc. (NASDAQ:META) is in 4th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 194 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the fourth quarter which was 177 in the previous quarter.
We discussed Meta Platforms, Inc. (NASDAQ:META) in another article and shared the list of best AI stocks for 2023. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- Billionaire Ken Fisher’s New Purchases
- 21 Next Generation Battery Technology Companies
- 10 Best Stocks to Buy for Good Returns
Disclosure: None. This article is originally published at Insider Monkey.
