Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In Q2, data indicated strong US economic activity and a robust labor market, while inflation gradually moved closer to the Fed’s 2% target. In the second quarter, its Investor Class fund ARTSX returned -4.45%, Advisor Class fund APDSX posted a return of -4.40%, and Institutional Class fund APHSX returned -4.38%, compared to a return of -2.92% for the Russell 2000 Growth Index. From a sector standpoint, the underperformance was due to negative security selection, while the impact of allocation was slightly positive. 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 Inspire Medical Systems, Inc. (NYSE:INSP), in the second quarter 2024 investor letter. Inspire Medical Systems, Inc. (NYSE:INSP) is a medical technology company, focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea. The one-month return of Inspire Medical Systems, Inc. (NYSE:INSP) was -9.31%, and its shares lost 56.29% of their value over the last 52 weeks. On July 26, 2024, Inspire Medical Systems, Inc. (NYSE:INSP) stock closed at $125.79 per share with a market capitalization of $3.737 billion.
Artisan Small Cap Fund stated the following regarding Inspire Medical Systems, Inc. (NYSE:INSP) in its Q2 2024 investor letter:
“Along with Twist Bioservices, notable adds in the quarter included Inspire Medical Systems, Inc. (NYSE:INSP). Inspire Medical Systems is the leader in Hypoglossal Nerve Stimulation (HGNS) for treating obstructive sleep apnea (OSA). For patients with moderate or severe OSA, the company offers the only effective alternative to the standard of care, CPAP. It is the only US company with an approved HGNS device. Shares experienced a dramatic selloff after reporting Q1 US sales that were behind expectations. Furthermore, investor concerns about utilization within its centers providing Inspire therapy were amplified by the company’s decision to stop disclosing center count in 2025. However, we thought the report had a lot to like, including increased top-line guidance for the year and expectations to reach profitability earlier than expected. We decided to use the weakness as an opportunity to build our position.”
A medical professional performing a minimally invasive procedure while using the company’s technology.
Inspire Medical Systems, Inc. (NYSE:INSP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Inspire Medical Systems, Inc. (NYSE:INSP) at the end of the first quarter which was 46 in the previous quarter. In the first quarter, Inspire Medical Systems, Inc. (NYSE:INSP) generated revenue of $164 million, which represents a 28% increase compared to Q1 2023. While we acknowledge the potential of Inspire Medical Systems, Inc. (NYSE:INSP) 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 Inspire Medical Systems, Inc. (NYSE:INSP) and shared Madison Small Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.
