Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, its Investor Class fund ARTMX returned -2.43%, Advisor Class fund APDMX posted a return of -2.42%, and Institutional Class fund APHMX returned -2.41%, compared to a return of -0.65% for the Russell Midcap Growth Index. Sector allocation dragged the fund’s relative performance in the quarter. 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 Zscaler, Inc. (NASDAQ:ZS). Headquartered in San Jose, California, Zscaler, Inc. (NASDAQ:ZS) is a global cloud security company. On November 14, 2022, Zscaler, Inc. (NASDAQ:ZS) stock closed at $136.85 per share. One-month return of Zscaler, Inc. (NASDAQ:ZS) was -5.80%, and its shares lost 60.43% of their value over the last 52 weeks. Zscaler, Inc. (NASDAQ:ZS) has a market capitalization of $19.577 billion.
Artisan Partners made the following comment about Zscaler, Inc. (NASDAQ:ZS) in its Q3 2022 investor letter:
“Our notable adds in the quarter included Zscaler, Inc. (NASDAQ:ZS) , Etsy and BioNTech. Zscaler provides cloud-based Internet security solutions. The company recently delivered 61% revenue growth and expects to grow nearly 40% in 2023 (ahead of expectations). Despite solid fundamental momentum, shares have underperformed this year as investors have grown concerned about slowing demand for enterprise software as the broader global economy slows. We believe the dual trends of rising security vulnerability and increased enterprise digitization will lead to sustained demand, even in a recession. Cybersecurity remains a top concern for businesses and governments alike as cyberattacks can have devastating financial and reputational consequences. From 2018 to 2020, losses from cybercrimes grew 67% to $1 trillion, and some estimate it could reach $10 trillion by 2025. Meanwhile, managing the security needs of legacy on-premise applications, a growing number of cloud-based applications (Office 365, Salesforce, etc.) and a more remote workforce (versus pre-pandemic) make operating IT infrastructures increasingly complex. Zscaler’s scalable, cloud-based security platform is a more secure and efficient way to connect users and applications, which eliminates the need for several layers of security (firewalls, VPNs, etc.) developed and built over the last couple of decades. For these reasons and with shares trading at an attractive discount to our PMV estimate, we added to our position.”
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Zscaler, Inc. (NASDAQ:ZS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Zscaler, Inc. (NASDAQ:ZS) at the end of the second quarter, which was 39 in the previous quarter.
We discussed Zscaler, Inc. (NASDAQ:ZS) in another article and shared the list of stocks that will double in 2023. 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.
