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 Etsy, Inc. (NASDAQ:ETSY) in the Q2 2024 investor letter. Etsy, Inc. (NASDAQ:ETSY) operates two-sided online marketplaces that connect buyers and sellers. The one-month return of Etsy, Inc. (NASDAQ:ETSY) was 9.23%, and its shares lost 38.74% of their value over the last 52 weeks. On July 26, 2024, Etsy, Inc. (NASDAQ:ETSY) stock closed at $62.27 per share with a market capitalization of $7.281 billion.
Artisan Small Cap Fund stated the following regarding Etsy, Inc. (NASDAQ:ETSY) in its Q2 2024 investor letter:
“We ended our investment campaigns in Bentley and Etsy, Inc. (NASDAQ:ETSY) during the quarter. Etsy is the leading e-commerce marketplace for buyers and sellers of unique, hard-to-find handmade or vintage products. Given its large addressable market, experienced management team and unique technology investments, we believed the company had a long runway for further top-line growth. However, financial results have been disappointing, and we decided to exit the position.”
A young woman shopping for a vintage fashion item online.
Etsy, Inc. (NASDAQ:ETSY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Etsy, Inc. (NASDAQ:ETSY) at the end of the first quarter which was 36 in the previous quarter. Etsy, Inc.’s (NASDAQ:ETSY) revenue for the first quarter increased by 0.8% to reach $646 million and reported $168 million in adjusted EBITDA. While we acknowledge the potential of Etsy, Inc. (NASDAQ:ETSY) 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 Etsy, Inc. (NASDAQ:ETSY) and shared Oakmark Global Fund’s views on the company. 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.