Artisan Partners, a high value-added investment management firm, published its “Artisan Value Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. A return of -1.33% was recorded by its Investor Class: ARTLX, -1.28% by both its Advisor Class: APDLX, and Institutional Class: APHLX for the third quarter of 2021, all below the Russell 1000® Value Index that delivered a -0.78% return, and the Russell 1000® Index that gained 0.21% for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.
Artisan Value Fund, in its Q3 2021 investor letter, mentioned Koninklijke Philips N.V. (NYSE: PHG) and discussed its stance on the firm. Koninklijke Philips N.V. is an Amsterdam, Netherlands-based multinational conglomerate company with a $31.7 billion market capitalization. PHG delivered a -35.96% return since the beginning of the year, while its 12-month returns are down by -33.45%. The stock closed at $34.69 per share on December 06, 2021.
Here is what Artisan Value Fund has to say about Koninklijke Philips N.V. in its Q3 2021 investor letter:
“We initiated two new positions in Q3, (including) Philips. After exiting more consumer-focused businesses such as TV and lighting over the past decade, Philips has become a health care technology company operating across three main areas: diagnosis and treatment, connected care and personal health. The company primarily competes with Siemens and GE. Our opportunity came after shares fell on market fears regarding potential litigation in relation to its sleep division. In its first-generation CPAP machine for sleep apnea, there have been reported cases of degrading foam that can expose users to harmful particles. The company has instituted a recall offering to swap out the device or repair the existing machine. The news resulted in the company losing 10 billion euros in market cap, which seems overdone. The sleep division is a small part of the overall business—which we do not believe is going to zero. The company has a large installed based of diagnostic equipment (e.g., MRI/PET/CT/ultrasound scanners) that offers a high recurring stream of software-like maintenance revenues. This is a sticky business as medical providers are reluctant to switch over to competitors. So, the market’s fears about headlines allowed us to purchase a high-quality medical technology business at an undemanding 16X multiple on CY2021 earnings.”
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Based on our calculations, Koninklijke Philips N.V. (NYSE: PHG) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. PHG was in 11 hedge fund portfolios at the end of the third quarter of 2021, compared to 10 funds in the previous quarter. Koninklijke Philips N.V. (NYSE: PHG) delivered a -27.06% return in the past 3 months.
Disclosure: None. This article is originally published at Insider Monkey.
