Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund’s Investor Class fund ARTMX returned -5.73%, Advisor Class fund APDMX posted a return of -5.67%, and Institutional Class fund APHMX returned -5.64%, compared to a -3.21% return for the Russell Midcap Growth Index. The portfolio generated negative absolute returns and underperformed the index in the second quarter. Modest negative security selection across multiple sectors, including information technology, industrials, communication services, and health care led to the underperformance and was partially offset by outperformance within consumer discretionary. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Artisan Mid Cap Fund highlighted stocks like MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI), in the second quarter 2024 investor letter. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) manufactures analog semiconductor solutions for wireless and wireline applications across the radio frequency (RF), microwave, millimeter wave, and light wave spectrum. The one-month return of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) was 9.44%, and its shares gained 79.06% of their value over the last 52 weeks. On July 16, 2024, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) stock closed at $117.30 per share with a market capitalization of $8.458 billion.
Artisan Mid Cap Fund stated the following regarding MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) in its Q2 2024 investor letter:
“Along with Lattice Semiconductor, Celsius and Tyler Technologies, notable adds in the quarter included West Pharmaceutical Services, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) and Liberty Formula One. MACOM Technology Solutions designs and manufactures high-performance semiconductor products in the aerospace and defense, industrial, telecommunications and data center end markets. The company’s relatively new management team is taking steps to accelerate top-line growth and expand margins by addressing smaller, long-duration product cycle markets in which it can provide a differentiated offering, especially in compound semis (those made from two or more elements). The data center and defense end markets are providing steady growth. As a member of the US Department of Defense’s trusted foundry program, MACOM is a trusted manufacturer for US military and aerospace applications and offers a comprehensive portfolio of products that support the demanding performance requirements of today’s aerospace and defense systems. Meanwhile, we believe the more cyclical areas of the business within industrial and telecommunications are not far from a recovery phase that will provide meaningful earnings upside in the years to come. The quarterly results were thesis affirming, and we decided to add to the position.”
An aerial view of a semiconductor factory, with its intricate machinery and equipment.
MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) at the end of the first quarter which was 14 in the previous quarter. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) reported $181.2 million in revenues in the fiscal second quarter of 2024, up 15.3% sequentially and adjusted EPS of $0.59 per diluted share. While we acknowledge the potential of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) 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 MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) and shared the list of most valuable semiconductor companies in the world. 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.
