Artisan Partners, an investment management company, released its “Artisan Value Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund underperformed its benchmark index. Its Investor Class fund ARTLX returned -7.04%, Advisor Class fund APDLX posted a return of -7.07%, and Institutional Class fund APHLX returned -7.06% in the quarter, compared to a -5.62% return for the Russell 1000 Value Index. 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 FedEx Corporation (NYSE:FDX). Based in Memphis, Tennessee, FedEx Corporation (NYSE:FDX) is a transportation, e-commerce, and business services providing company. On November 14, 2022, FedEx Corporation (NYSE:FDX) stock closed at $174.76 per share. One-month return of FedEx Corporation (NYSE:FDX) was 11.81%, and its shares lost 30.97% of their value over the last 52 weeks. FedEx Corporation (NYSE:FDX) has a market capitalization of $45.476 billion.
Artisan Partners made the following comment about FedEx Corporation (NYSE:FDX) in its Q3 2022 investor letter:
“Earnings results at FedEx Corporation (NYSE:FDX), a global shipping and logistics firm, disappointed due to slowing volumes—principally in its Express segment, which resulted in negative operating leverage—in addition to continued cost pressures. The Express business has been affected by trade disruptions in Asia from China’s COVID lockdowns, as well as the mix of global consumer spending trending back toward services and away from goods—a normalization of pandemic-driven consumer behavior. A key question for investors is how much of this demand slowdown is idiosyncratic and therefore less likely to repeat and how much is the start of a possible cyclical slowdown. To counter these headwinds, FedEx is looking to achieve cost reductions while it continues to implement multi-year structural cost reduction initiatives focused on technology investments and efficiency gains. Given a mixed track record and the recent earnings miss, there is a high degree of skepticism embedded in the current stock price as it sells for less than 8X our estimate of normalized earnings. While operating results can be choppy, the longer term business economics are highly favorable given the global shipping industry’s consolidated structure and massive barriers to entry that afford operators with pricing power to counter cost inflation and earn respectable returns on capital over the business cycle.”
FedEx Corporation (NYSE:FDX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held FedEx Corporation (NYSE:FDX) at the end of the second quarter which was 52 in the previous quarter.
We discussed FedEx Corporation (NYSE:FDX) in another article and shared the top logistics companies in USA. 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.
