Artisan Partners, a high value-added investment management firm, published its ‘Artisan Global Discovery Fund’ second quarter 2021 investor letter – a copy of which can be downloaded here. A return of 10.28% was recorded by its Investor Class: APFDX, 10.27% by its Advisor Class: APDDX, and 10.35% by its Institutional Class: APHDX for the second quarter of 2021, all beating the MSCI All Country World Index that delivered a 7.39% return for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their top bets for 2021.
In the Q2 2021 investor letter of Artisan Partners, the fund mentioned Boston Scientific Corporation (NYSE: BSX) and discussed its stance on the firm. Boston Scientific Corporation is a Marlborough, Massachusetts-based medical devices manufacturer with a $63.5 billion market capitalization. BSX delivered a 24.14% return since the beginning of the year, while its 12-month returns are up by 18.32%. The stock closed at $43.36 per share on September 21, 2021.
Here is what Artisan Partners has to say about Boston Scientific Corporation in its Q2 2021 investor letter:
“Among our top contributors (includes) Boston Scientific. Shares of Boston Scientific were volatile throughout most of 2020 as the pandemic drove significant drops in elective medical procedures, though our longer-term constructive view and belief elective medical procedures would bounce back post pandemic prompted us to add to our position. We have been rewarded with shares rebounding this year alongside a recovery in elective medical procedures. Longer-term, we believe the company’s investments in higher growth categories will drive revenue growth to the higher end of its peer group with rising margins.”
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Based on our calculations, Boston Scientific Corporation (NYSE: BSX) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. BSX was in 51 hedge fund portfolios at the end of the first half of 2021, compared to 44 funds in the previous quarter. Boston Scientific Corporation (NYSE: BSX) delivered a 1.92% return in the past 3 months.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
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Disclosure: None. This article is originally published at Insider Monkey.
