Artisan Partners, an investment management company, released its “Artisan Value Income Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. In Q1, US equities markets surged to new all-time highs, supported by a robust US economy. The fund’s Investor Class APFWX, Advisor Class APDWX, and Institutional Class APHWX returned 4.87%, 4.87%, and 4.98% respectively, in the quarter compared to a 10.56% return for the S&P 500 Index. The portfolio delivered a good total return in Q1 comprised of premium income and substantial capital appreciation, in line with the firm’s total return expectations. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.
Artisan Value Income Fund highlighted stocks like NVent Electric plc (NYSE:NVT), in the first quarter 2024 investor letter. NVent Electric plc (NYSE:NVT) designs, produces, distributes installs, and services electrical connection and protection products. NVent Electric plc’s (NYSE:NVT) one-month return was -3.30%, and its shares gained 66.51% of their value over the last 52 weeks. On June 5, 2024, NVent Electric plc (NYSE:NVT) stock closed at $79.36 per share with a market capitalization of $13.175 billion.
Artisan Value Income Fund stated the following regarding NVent Electric plc (NYSE:NVT) in its first quarter 2024 investor letter:
“Our top contributors were NVent Electric plc (NYSE:NVT), Corebridge Financial and Lamar Advertising. nVent Electric provides electrical connections and protection solutions. These are mission-critical elements in commercial electrical and mechanical systems and civil infrastructure. nVent has shown consistent and steady growth since the pandemic, having reported 12 consecutive quarters of year-over-year sales growth supported by the secular tailwinds of electrification, sustainability and digitalization. Growth has come from a combination of volumes and pricing, with the company successfully offsetting inflation with pricing. Due to the low cost of its products relative to a project and high failure costs for customers, nVent has good pricing power and sustainable margins. In the recent quarter, the company’s data centers business (~14% of sales) was a standout, growing 20% year over year, as the acceleration in artificial intelligence infrastructure investments has created increased demand for the company’s liquid cooling solutions. Though nVent is no longer selling as cheaply as when it first drew our interest, the stock still sells at a lower P/E multiple than the S&P 500® Index despite better earnings growth.”
A workman standing next to a newly constructed wall, showcasing the company’s electrical enclosures.
NVent Electric plc (NYSE:NVT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held NVent Electric plc (NYSE:NVT) at the end of the first quarter which was 48 in the previous quarter. NVent Electric plc (NYSE:NVT) reported $875 million in sales for the first quarter, an 18% increase relative to last year. While we acknowledge the potential of NVent Electric plc (NYSE:NVT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed NVent Electric plc (NYSE:NVT) and shared Ariel Small Cap Value Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 2024 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.
