Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, its Investor Class fund ARTMX returned 4.44%, Advisor Class fund APDMX posted a return of 4.48%, and Institutional Class fund APHMX returned 4.49%, compared to a 6.23% return for the Russell Midcap Growth Index. Sector allocation and security selection drove the Q2 underperformance. ARTMX, APDMX, and APHMX returned 17.36%, 17.47%, and 17.48%, respectively, compared to 15.94% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Artisan Mid Cap Fund highlighted stocks like Roblox Corporation (NYSE:RBLX) in the second quarter 2023 investor letter. Headquartered in San Mateo, California, Roblox Corporation (NYSE:RBLX) is an online entertainment platform. On August 29, 2023, Roblox Corporation (NYSE:RBLX) stock closed at $27.76 per share. One-month return of Roblox Corporation (NYSE:RBLX) was -26.23%, and its shares lost 29.02% of their value over the last 52 weeks. Roblox Corporation (NYSE:RBLX) has a market capitalization of $16.714 billion.
Artisan Mid Cap Fund made the following comment about Roblox Corporation (NYSE:RBLX) in its second quarter 2023 investor letter:
“We initiated new GardenSM positions in Keysight, Roblox and Liberty Media Corp–Liberty Formula One during the quarter. Roblox Corporation (NYSE:RBLX) is an online platform that allows users to play games created by other users and to create their own games using the Roblox Studio, a robust suite of development and coding tools. The company’s model is similar to a social network in that user-generated content scales with user growth on the platform and benefits from viral adoption. While the graphics, user interface and general gameplay currently appeal more to younger people, Roblox is pursuing a strategy of investing heavily to accelerate its technological capabilities so that it can provide experiences that appeal to an older demographic. We believe the valuation is justifiable given the stickiness of the core platform (the average user spends 2.4 hours per day on Roblox), its attractive business model and a potential bull case where Roblox becomes a leading place to create and consume social 3D experiences for the general population.
Roblox is another (there are more) example of a company that is well-positioned to benefit from generative AI advancements. As discussed earlier, Roblox is a social gaming platform that relies on user-generated content. This content is enabled by the platform’s robustyet-simple tools for relatively novice developers. AI has the potential to turbocharge this tool set—with AI-assisted code building and generative artwork creation. Over time, this should enable a deeper pool of user-generated content that attracts an expanding set of game players.”
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Roblox Corporation (NYSE:RBLX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Roblox Corporation (NYSE:RBLX) at the end of second quarter which was 37 in the previous quarter.
We discussed Roblox Corporation (NYSE:RBLX) in another article and shared the list of best virtual reality stocks to invest in. In addition, please check out our hedge fund investor letters Q2 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.
