Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The final quarter of 2023 saw a continuous fluctuation between recessionary fears and soft-landing optimism. In the fourth quarter, the fund’s Investor Class fund ARTMX returned 8.86%, Advisor Class fund APDMX posted a return of 8.93%, and Institutional Class fund APHMX returned 8.96%, compared to a 14.55% return for the Russell Midcap Growth Index. The portfolio generated a positive absolute return in Q4 but underperformed the Russell Midcap Growth Index due to poor security selection, particularly in health care and information technology. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Artisan Mid Cap Fund featured stocks like Quanta Services, Inc. (NYSE:PWR) in the fourth quarter 2023 investor letter. Headquartered in Houston, Texas, Quanta Services, Inc. (NYSE:PWR) offers infrastructure solutions to the electric power, oil and gas, and communication industries. On March 6, 2024, Quanta Services, Inc. (NYSE:PWR) stock closed at $241.80 per share. One-month return of Quanta Services, Inc. (NYSE:PWR) was 16.38%, and its shares gained 50.61% of their value over the last 52 weeks. Quanta Services, Inc. (NYSE:PWR) has a market capitalization of $35.242 billion.
Artisan Mid Cap Fund stated the following regarding Quanta Services, Inc. (NYSE:PWR) in its fourth quarter 2023 investor letter:
“Along with DexCom, notable adds in the quarter included Quanta Services, Inc. (NYSE:PWR) and Jabil. Quanta provides outsourced skilled labor for maintenance and construction services, primarily to utilities. We have followed the company for over a decade and have witnessed its shift from oil and gas to renewables. The energy transition (solar and wind farms, electric vehicles, etc.) requires investments in the US energy grid to support greater electrification. At the same time, climate change is increasing stress on the existing grid, forcing utilities to increase maintenance spending. Furthermore, Federal incentive programs, such as the Inflation Reduction Act and Bipartisan Infrastructure Act, will help fuel Quanta’s long-term growth given its expertise in transmission and distribution connections as renewable energy infrastructure seeks to connect to the grid. The stock sold off early in the quarter on concerns that higher interest rates would lead to a pullback in renewables investments by utility customers. However, based on our industry research, we think Quanta’s key customers are well resourced and committed to meeting long-term electrification needs via infrastructure investment. We used the selloff as an opportunity to move the position into the CropSM at a more attractive valuation.”
A team of electricians climbing an industrial wiring structure, the complexity of the project revealed in the background.
Quanta Services, Inc. (NYSE:PWR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Quanta Services, Inc. (NYSE:PWR) was held by 51 hedge fund portfolios, down from 54 in the previous quarter, according to our database.
We discussed Quanta Services, Inc. (NYSE:PWR) in another article and shared the list of high growth non-tech stocks that are profitable. 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.
