Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In Q2, data indicated strong US economic activity and a robust labor market, while inflation gradually moved closer to the Fed’s 2% target. In the second quarter, its Investor Class fund ARTSX returned -4.45%, Advisor Class fund APDSX posted a return of -4.40%, and Institutional Class fund APHSX returned -4.38%, compared to a return of -2.92% for the Russell 2000 Growth Index. From a sector standpoint, the underperformance was due to negative security selection, while the impact of allocation was slightly positive. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Artisan Small Cap Fund highlighted stocks like Workiva Inc. (NYSE:WK), in the second quarter 2024 investor letter. Workiva Inc. (NYSE:WK) offers cloud-based reporting solutions. The one-month return of Workiva Inc. (NYSE:WK) was 2.66%, and its shares lost 30.30% of their value over the last 52 weeks. On July 26, 2024, Workiva Inc. (NYSE:WK) stock closed at $74.52 per share with a market capitalization of $4.027 billion.
Artisan Small Cap Fund stated the following regarding Workiva Inc. (NYSE:WK) in its Q2 2024 investor letter:
“Notable trims in the quarter included Workiva Inc. (NYSE:WK) and Wingstop. Workiva is a leading provider of cloud software for financial reporting with approximately 70% of its business tied to SEC reporting through its core Wdesk offering. Our profit cycle thesis is based on the company’s capability to identify and quickly roll out new products, expand beyond North America and benefit from the ramp-up of ESG regulatory reporting longer term. While we believe trends support the company’s growth over a multiyear period, we believe it may face near-term deceleration due to corporate decision-makers prioritizing spending toward AI-related projects versus enterprise software solutions.”
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Workiva Inc. (NYSE:WK) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Workiva Inc. (NYSE:WK) at the end of the first quarter which was 2o in the previous quarter. In the first quarter, Workiva Inc. (NYSE:WK) reported a total revenue of $175.7 million, a substantial 17% growth from Q1 2023. While we acknowledge the potential of Workiva Inc. (NYSE:WK) 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 Workiva Inc. (NYSE:WK) and shared the list of best cloud stocks to buy according to analysts. 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.
