Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund’s Investor Class fund ARTMX returned -5.73%, Advisor Class fund APDMX posted a return of -5.67%, and Institutional Class fund APHMX returned -5.64%, compared to a -3.21% return for the Russell Midcap Growth Index. The portfolio generated negative absolute returns and underperformed the index in the second quarter. Modest negative security selection across multiple sectors, including information technology, industrials, communication services, and health care led to the underperformance and was partially offset by outperformance within consumer discretionary. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Artisan Mid Cap Fund highlighted stocks like Spotify Technology S.A. (NYSE:SPOT) in the second quarter 2024 investor letter. Headquartered in Luxembourg City, Luxembourg, Spotify Technology S.A. (NYSE:SPOT) offers audio streaming subscription services. The one-month return of Spotify Technology S.A. (NYSE:SPOT) was -2.50%, and its shares gained 68.25% of their value over the last 52 weeks. On July 15, 2024, Spotify Technology S.A. (NYSE:SPOT) stock closed at $302.15 per share with a market capitalization of $60.144 billion.
Artisan Mid Cap Fund stated the following regarding Spotify Technology S.A. (NYSE:SPOT) in its Q2 2024 investor letter:
“Among our top Q1 contributors were Tyler Technologies, Spotify Technology S.A. (NYSE:SPOT) and Argenx. Spotify is a leading global audio streaming franchise with 600 million monthly active users. We believe its position in the supply chain is solid given a secular trend around the fragmentation of music as well as internal product and pricing initiatives. Shares rallied after the company reported strong earnings results, including 21% revenue growth. Importantly, the company also reported gross margins expanded to 27.6%, and we believe it can expand further due to likely price increases, potentially better terms with labels and further cost discipline.”
A person wearing headphones listening to an audio streaming service.
Spotify Technology S.A. (NYSE:SPOT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. At the end of the first quarter, Spotify Technology S.A. (NYSE:SPOT) was held by 77 hedge fund portfolios, compared to 68 in the previous quarter, according to our database. The first quarter revenue of Spotify Technology S.A. (NYSE:SPOT) was EUR3.6 billion, up 21% year-on-year on a constant currency basis. While we acknowledge the potential of Spotify Technology S.A. (NYSE:SPOT) 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 Spotify Technology S.A. (NYSE:SPOT) and shared the list of best stocks to buy and hold for 5 years according to Cathie Wood. Spotify Technology S.A. (NYSE:SPOT) made significant contribution to Artisan Mid Cap Fund’s performance in Q1 2024. 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.
