Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. Equity markets surged at the beginning of 2024 in anticipation of the US economy entering a “goldilocks” scenario – a soft landing combined with decreasing inflation, potentially leading to a cut in interest rates by the Fed. In the first quarter, its Investor Class fund ARTSX returned 9.43%, Advisor Class fund APDSX posted a return of 9.42%, and Institutional Class fund APHSX returned 9.48%, compared to a return of 7.58% for the Russell 2000 Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Artisan Small Cap Fund highlighted stocks like Super Micro Computer, Inc. (NASDAQ:SMCI), in the first quarter 2024 investor letter. Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high-performance server and storage solutions. The one-month return of Super Micro Computer, Inc. (NASDAQ:SMCI) was 18.48%, and its shares gained 290.59% of their value over the last 52 weeks. On May 28, 2024, Super Micro Computer, Inc. (NASDAQ:SMCI) stock closed at $874.72 per share with a market capitalization of $51.221 billion.
Artisan Small Cap Fund stated the following regarding Super Micro Computer, Inc. (NASDAQ:SMCI) in its first quarter 2024 investor letter:
“Extremely strong returns by two sector constituents, Super Micro Computer, Inc. (NASDAQ:SMCI) and MicroStrategy, contributed 393bps (52%) to the index’s return and gave them the largest combined weighting in the index’s history. Super Micro Computer started the year with a 1.1% index weighting and a market value of $15.9 billion, and it ended the quarter at 3.8% and $56.5 billion. The company manufactures server racks for central processing units and GPUs that have experienced an AI-driven uptick in demand from its cloud and enterprise customers. This company has been on our radar for years, and we met with them in our Milwaukee offices in early 2023. However, we don’t consider the stock investable given corporate governance issues, including a lack of board independence, misaligned compensation arrangements, accounting misstatements (including a settlement) and related party transactions.”
A team of technicians in a server room, testing and managing the newest server solutions.
Super Micro Computer, Inc. (NASDAQ:SMCI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Super Micro Computer, Inc. (NASDAQ:SMCI) at the end of the first quarter which was 40 in the previous quarter.
Super Micro Computer, Inc. (NASDAQ:SMCI) experienced another solid quarter with revenue of $3.85 billion, up 200% from the same quarter the previous year. The robust performance was driven by the ongoing demand for rack-scale plug-and-play total AI solutions.
In another article, we discussed Super Micro Computer, Inc. (NASDAQ:SMCI) and shared the list of unstoppable AI stocks to buy. Polen U.S. Small Company Growth Strategy commented about Super Micro Computer, Inc. (NASDAQ:SMCI) in the first quarter 2024 investor letter. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
