Artisan Partners, an investment management company, released its “Artisan Mid Cap Value Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, its Investor Class fund ARTQX returned -5.37%, Advisor Class fund APDQX posted a return of -5.34%, and Institutional Class fund APHQX returned -5.28, compared to a -3.40% return for the Russell Midcap Value Index. Markets contracted in Q2 after widespread market participation drove US stocks upward in late 2023 and early 2024, with a few mega-cap technology names pushing the S&P 500 Index to all-time highs. Healthcare and consumer discretionary holdings held back the portfolio’s performance relative to the index. Financials, industrials, and technology holdings outperformed on the positive side. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Artisan Mid Cap Value Fund highlighted stocks like Vail Resorts, Inc. (NYSE:MTN) in the Q2 2024 investor letter. Headquartered in Broomfield, Colorado, Vail Resorts, Inc. (NYSE:MTN) is a mountain resorts and ski areas operator. The one-month return of Vail Resorts, Inc. (NYSE:MTN) was -4.22%, and its shares lost 27.70% of their value over the last 52 weeks. On August 7, 2024, Vail Resorts, Inc. (NYSE:MTN) stock closed at $167.58 per share with a market capitalization of $6.305 billion.
Artisan Mid Cap Value Fund stated the following regarding Vail Resorts, Inc. (NYSE:MTN) in its Q2 2024 investor letter:
“We also added to our existing position in Vail Resorts, Inc. (NYSE:MTN), a premium skiing, lodging and resort company, that has fallen by nearly 25% over the past year. Mother nature didn’t cooperate this past winter as there was below-average snowfall early in the ski season and highly variable temperatures. That contributed to reduced visitation, which had second-order effects on retail, rental and lodging activity. On the positive side, growth in advanced pass sales drove low-single-digit growth in lift revenues, while labor costs were well controlled. Vail is one of a couple dominant players in an industry that benefits from high barriers to entry due to the fixed supply of suitable mountains. Of course, this is a highly seasonal business, dependent on appetite for ski vacations and the right weather conditions, but the company has made strides to improve the business model by increasing the percentage of its business from the advance commitment pass product, which transforms the business from one of uncertainty and weather dependency to one of greater visibility and predictability. This provides stability and the ability to spend on capex during the off season to improve the guest experience, as well as pursue additional footprint expansion.”
An aerial view of a mountain resort, its snow-capped peaks and lush ski slopes revealed in all their glory.
Vail Resorts, Inc. (NYSE:MTN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Vail Resorts, Inc. (NYSE:MTN) at the end of the first quarter which was 38 in the previous quarter. Vail Resorts, Inc.’s (NYSE:MTN) net income for the third quarter of fiscal 2024 was $362 million, or $9.54 per diluted share, up from $325 million, or $8.18 per diluted share, in the prior year. While we acknowledge the potential of Vail Resorts, Inc. (NYSE:MTN) 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 Vail Resorts, Inc. (NYSE:MTN) and shared the list of stocks recently downgraded by analysts. 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.
