Artisan Partners, an investment management company, released its “Artisan Value Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. US Treasury yields saw a significant decline towards the end of 2023, which led to a massive surge in the last two months of the year for US stocks. The fund’s Investor Class ARTLX, Advisor Class APDLX, and Institutional Class APHLX returned 9.75%, 9.75%, and 9.79% respectively, in the quarter compared to a 9.50% return for the Russell 1000 Value Index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.
Artisan Value Fund featured stocks like Netflix, Inc. (NASDAQ:NFLX) in the fourth quarter 2023 investor letter. Headquartered in Los Gatos, California, Netflix, Inc. (NASDAQ:NFLX) is a streaming platform. On March 13, 2024, Netflix, Inc. (NASDAQ:NFLX) stock closed at $609.45 per share. One-month return of Netflix, Inc. (NASDAQ:NFLX) was 2.69%, and its shares gained 96.56% of their value over the last 52 weeks. Netflix, Inc. (NASDAQ:NFLX) has a market capitalization of $263.746 billion.
Artisan Value Fund stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its fourth quarter 2023 investor letter:
“Netflix, Inc. (NASDAQ:NFLX) and Meta Platforms—both categorized in the communication services sector—rounded out our top five contributors in Q4 as well as for 2023. Both stocks suffered sharp declines in 2022, each losing more than 50% of their market capitalizations. In 2022, we purchased Netflix and added to our position in Meta on weakness as both stocks were selling significantly below our estimates of fair value. Netflix and other media stocks were out of favor due to questions about the long-term economics of streaming, slowing subscriber growth and increasing competition. Meta’s challenges were more self-inflicted as a ramp-up in spending caused free cash flow to plummet. We saw Netflix’s slowing subscriber growth as a normal feature of a maturing streaming market. Despite growth having slowed, Netflix’s position as the largest streaming service with currently close to 250 million subscribers is a key strategic advantage. Streaming is a scale and intellectual property business model that will result in a few large winners. Netflix remains far ahead of all streaming peers in subscribers, revenue, content spend and cash flow generation. Importantly, Netflix has also evolved its business model over the past year, becoming more efficient with its content spending, cracking down on password sharing and introducing a lower cost advertising-supported tier (lowering subscriber churn). These changes have led to robust earnings and free cash flow growth. We did trim our positions in Meta and Netflix to put capital to work in names having greater discounts.”
Photo by Thibault Penin on Unsplash
Netflix, Inc. (NASDAQ:NFLX) is in 23rd position on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Netflix, Inc. (NASDAQ:NFLX) was held by 89 hedge fund portfolios, down from 102 in the previous quarter, according to our database.
We discussed Netflix, Inc. (NASDAQ:NFLX) in another article and shared the list of best performing growth stocks in January 2024. In addition, please check out our hedge fund investor letters Q4 2023 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.
