Should You Invest Your Hard Earned Cash in 2U, Inc. (TWOU)?

Artisan Partners, a high value-added investment management firm, published its ‘Artisan Small Cap Fund’ third quarter 2021 investor letter – a copy of which can be downloaded here. A return of -1.20% was recorded by its Investor Class: ARTSX, -1.17% by its Advisor Class: APDSX, and -1.13% by its Institutional Class: APHSX for the third quarter of 2021, all above the Russell 2000® Growth Index that delivered a -5.65% return and the Russell 2000® Index that was down by -4.36% for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Artisan Small Cap Fund, in its Q3 2021 investor letter, mentioned 2U, Inc. (NASDAQ: TWOU) and discussed its stance on the firm. 2U, Inc. is a Lanham, Maryland-based educational technology company with a $1.6 billion market capitalization. TWOU delivered a 120.98% return since the beginning of the year, while its 12-month returns are up by 287.56%. The stock closed at $21.33 per share on December 03, 2021.

Here is what Artisan Small Cap Fund has to say about 2U, Inc.  in its Q3 2021 investor letter:

“2U provides cloud-based services enabling universities and alternative credentialing to launch online education programs. The company’s service—marketing, recruitment, learning and design—is provided in exchange for 60%-80% of tuition revenue (varies by course type). The company has an impressive lineup of customers, including Yale, Harvard, Columbia and London School of Economics. We believe the recent acquisition of edX, the second-largest online learning platform, solidifies 2U’s market leadership and should allow it to capture the single largest share of higher education transitioning from on-campus to online—some estimate the $2.2 trillion global higher education market is only 2% penetrated—and as alternative credentials proliferate and become more accepted.”

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Based on our calculations, 2U, Inc. (NASDAQ: TWOU) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. TWOU was in 22 hedge fund portfolios at the end of the third quarter of 2021, compared to 25 funds in the previous quarter. 2U, Inc. (NASDAQ: TWOU) delivered a 36.10% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.