Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, its Investor Class fund ARTSX returned -7.98%, Advisor Class fund APDSX posted a return of -7.96%, and Institutional Class fund APHSX returned -7.97%, compared to a return of -7.32% for the Russell 2000 Growth Index. From a sector perspective, allocation impacts drove the sector’s underperformance, while security selection was positive. From an allocation perspective, the portfolio was hurt by its lack of exposure to energy and overweight exposure to health care. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Artisan Small Cap Fund highlighted stocks like Generac Holdings Inc. (NYSE:GNRC) in the Q3 2023 investor letter. Headquartered in Waukesha, Wisconsin, Generac Holdings Inc. (NYSE:GNRC) is a power generation equipment, energy storage systems, and other power product manufacturer and supplier. On December 1, 2023, Generac Holdings Inc. (NYSE:GNRC) stock closed at $122.30 per share. One-month return of Generac Holdings Inc. (NYSE:GNRC) was 19.35%, and its shares gained 26.60% of their value over the last 52 weeks. Generac Holdings Inc. (NYSE:GNRC) has a market capitalization of $7.513 billion.
Artisan Small Cap Fund made the following comment about Generac Holdings Inc. (NYSE:GNRC) in its Q3 2023 investor letter:
“Generac Holdings Inc. (NYSE:GNRC) manufactures residential backup generators in the US with a dominant market position. Our thesis was based on climate change causing more frequent and severe storms and power grid failures, both of which would bolster demand for Generac’s generators. In addition, the company’s residential solar backup battery business could enhance its overall profit cycle potential over time. However, the company is grappling with elevated inventory levels at a time when generator and residential solar backup demand may face a cyclical downturn as inflation and rising interest rates weigh on consumer spending. With sales and profits likely to come under pressure, we decided to exit the position.”
A generator being fueled and readied for use as part of an end-to-end green hydrogen ecosystem.
Generac Holdings Inc. (NYSE:GNRC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Generac Holdings Inc. (NYSE:GNRC) at the end of third quarter which was 43 in the previous quarter.
We discussed Generac Holdings Inc. (NYSE:GNRC) in another article and shared Ariel Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 2023 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.
