Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The third quarter saw strength in small cap stocks, particularly in July when the return on the Russell 2000 Index was 10.2%. In the quarter, its Investor Class fund ARTSX returned 9.02%, Advisor Class fund APDSX posted a return of 9.04%, and Institutional Class fund APHSX returned 9.06%, compared to a return of 8.41% for the Russell 2000 Growth Index. Outperformance of the fund in the quarter was driven by positive security selection within health care and consumer discretionary sectors. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Artisan Small Cap Fund highlighted stocks like Modine Manufacturing Company (NYSE:MOD) in the third quarter 2024 investor letter. Modine Manufacturing Company (NYSE:MOD) offers thermal management products and solutions. The one-month return of Modine Manufacturing Company (NYSE:MOD) was 2.40%, and its shares gained 140.99% of their value over the last 52 weeks. On December 10, 2024, Modine Manufacturing Company (NYSE:MOD) stock closed at $130.35 per share with a market capitalization of $6.844 billion.
Artisan Small Cap Fund stated the following regarding Modine Manufacturing Company (NYSE:MOD) in its Q3 2024 investor letter:
“Notable adds in the quarter included Intapp, Modine Manufacturing Company (NYSE:MOD) and MarketAxess. Modine is an industrial firm specializing in thermal management applications. The company has been on a transformation path since the arrival of its new CEO by leveraging its core competencies to enter new growth markets, such as data center cooling, advanced solutions for electric vehicles and air quality monitoring. We believe the company is entering an attractive profit cycle. New growth areas are more than offsetting declining legacy businesses, which should lead to higher margins over the coming years. During the quarter, we attended the company’s investor day and walked away more confident in its path to profit acceleration. We added the position to the CropSM of the portfolio.”
A technician in a factory, assembling a gas-fired unit heater.
Modine Manufacturing Company (NYSE:MOD) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Modine Manufacturing Company (NYSE:MOD) at the end of the third quarter which was 31 in the previous quarter. Modine Manufacturing Company’s (NYSE:MOD) sales increased 6% in the first quarter of 2025 due to acquisitions in organic growth and climate solution. While we acknowledge the potential of Modine Manufacturing Company (NYSE:MOD) 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 Modine Manufacturing Company (NYSE:MOD) and shared Alger Small Cap Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.