Artisan Partners, an investment management company, released its “Artisan Value Income Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. In Q1, US equities markets surged to new all-time highs, supported by a robust US economy. The fund’s Investor Class APFWX, Advisor Class APDWX, and Institutional Class APHWX returned 4.87%, 4.87%, and 4.98% respectively, in the quarter compared to a 10.56% return for the S&P 500 Index. The portfolio delivered a good total return in Q1 comprised of premium income and substantial capital appreciation, in line with the firm’s total return expectations. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.
Artisan Value Income Fund highlighted stocks like Alliant Energy Corporation (NASDAQ:LNT), in the first quarter 2024 investor letter. Alliant Energy Corporation (NASDAQ:LNT) is a utility holding company that provides regulated electricity and natural gas services. Alliant Energy Corporation’s (NASDAQ:LNT) one-month return was -1.03%, and its shares lost 4.30% of their value over the last 52 weeks. On June 5, 2024, Alliant Energy Corporation (NASDAQ:LNT) stock closed at $51.11 per share with a market capitalization of $13.12 billion.
Artisan Value Income Fund stated the following regarding Alliant Energy Corporation (NASDAQ:LNT) in its first quarter 2024 investor letter:
In Q1, we added two utilities to the portfolio: Alliant Energy and Evergy. Alliant Energy is a US-regulated electricity and natural gas utility operating in the Midwest. Evergy is a Kansas-based, fully integrated, fully electric utility. As the sector has lagged significantly over the past year, leading to an above-average earnings yield relative to the broader market (Exhibit 1), we’re finding more opportunity.
As a group, utilities have been out of favor for a few reasons. The interest rate environment has made bonds more appealing, and higher inflation has increased labor, equipment and commodities costs while also raising utilities’ costs of capital. Utility companies can pass on a lot of their costs to customers; however, rates are regulated, and regulators have strived to limit the rise in customers’ utility bills, which have already experienced large increases in the post-COVID inflationary period. Consequently, utilities haven’t been able to increase their ROEs as recent rates cases have gone against them…” (Click here to read the full text)
A close-up of an electrical power line with a bright blue sky in the background, highlighting the company’s selection of electricity and natural gas services.
Alliant Energy Corporation (NASDAQ:LNT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Alliant Energy Corporation (NASDAQ:LNT) at the end of the first quarter which was 25 in the previous quarter. Alliant Energy Corporation (NASDAQ:LNT) reported first-quarter 2024 earnings of $0.62 per share compared to the $0.65 per share for the first quarter of 2023. While we acknowledge the potential of Alliant Energy Corporation (NASDAQ:LNT) 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 addition, please check out our hedge fund investor letters Q1 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.
