Artisan Partners, an investment management company, released its “Artisan Mid Cap Value Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In Q3, US stocks recovered from brief periods of volatility to hit new all-time highs. The portfolio returned strong absolute returns in the third quarter but lagged the benchmark. In the quarter, its Investor Class fund ARTQX returned 8.58%, Advisor Class fund APDQX posted a return of 8.63%, and Institutional Class fund APHQX returned 8.61%, compared to a 10.08% return for the Russell Midcap Value Index. 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 Moelis & Company (NYSE:MC) in its Q3 2024 investor letter. Headquartered in New York, New York, Moelis & Company (NYSE:MC) is an investment banking advisory firm. The one-month return of Moelis & Company (NYSE:MC) was 5.73%, and its shares gained 67.09% of their value over the last 52 weeks. On November 15, 2024, Moelis & Company (NYSE:MC) stock closed at $74.69 per share with a market capitalization of $5.272 billion.
Artisan Mid Cap Value Fund stated the following regarding Moelis & Company (NYSE:MC) in its Q3 2024 investor letter:
“On the positive side, our financials and health care holdings contributed strongly to our absolute and relative performance. In the financials sector, we had a number of strong performers, including insurer Globe Life and boutique investment bank Moelis & Company (NYSE:MC). Moelis reported revenue growth of 45% y/y that was driven by strength in the capital markets advisory business. The company also provided an upbeat outlook for M&A, noting the best levels of pipeline activity in the firm’s history, even including 2021, which was a banner year. Adding to its optimistic outlook, interest rate cuts by the Fed could be a tailwind for a recovery in M&A markets. Unlike most peers, Moelis operates both restructuring and deal advisory businesses, which provides some degree of countercyclicality to the business model. Moelis carries zero debt and has a variable cost model, allowing it to remain cash flow positive even in stressful times. The firm returns all its excess cash flow to shareholders in the form of regular and special dividends. Since its IPO in 2014, Moelis has returned $2.5 billion in cash to shareholders.”
A professional financial advisor giving guidance in a modern office, to illustrate the wealth advisory services that the company provides.
Moelis & Company (NYSE:MC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Moelis & Company (NYSE:MC) at the end of the second quarter which was 19 in the previous quarter. Moelis & Company (NYSE:MC) reported adjusted revenue of $763 million in the first nine months, up 18% year-over-year. While we acknowledge the potential of Moelis & Company (NYSE:MC) 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 Moelis & Company (NYSE:MC) and shared Madison Mid Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.