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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Artisan Mid Cap Fund 2024 Q4 Investor Letter | Buyside Digest

Back to Fund Profile (Artisan Mid Cap Fund)

Primary Source Intelligence • Q4 2024 Letter Analysis

Artisan Mid Cap Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Artisan Mid Cap Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD+5.14%

YTD+12.19%

Annualized+12.78%

Positioning StanceConstructive

Market CapMid Cap

GeographyUS

Digest Analysis

Quick Take

"Media and software holdings benefiting from AI adoption and easing macro pressures. The fund lagged benchmarks due to missing momentum stocks Palantir and AppLovin."

Executive Summary

Artisan Mid Cap Fund delivered a strong 5.14% return in Q4 2024, bringing full-year performance to 12.19%. The portfolio benefited from rallies in Internet and media holdings including Shopify, Spotify, GoDaddy and Live Nation, driven by robust earnings and positive outlooks. Software investments showed significant improvement as macroeconomic pressures eased and AI adoption accelerated. However, the fund lagged the Russell Midcap Growth Index due to lack of exposure to momentum leaders Palantir Technologies and AppLovin, which together accounted for over 50% of the index's Q4 return. The team initiated new positions in US Foods, Pure Storage and Robinhood while exiting ON Semiconductor, Monday.com and CoStar Group. Looking ahead, the managers express confidence in AI-enabled technology holdings and see attractive opportunities in healthcare biotechnology. Key risks include potential inflationary pressures from proposed tariffs and political uncertainty from the incoming Trump administration's policy changes across trade, regulation and healthcare.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

72%

CautiousHigh

High Conviction (72%)

The manager demonstrates high conviction through concentrated positions in named holdings with detailed thesis explanations, specific position sizing decisions (adds, trims, exits), and clear views on profit cycles. Multiple holdings are discussed with conviction despite some hedged language around macro uncertainty.

Growth Outlook

25%

BearishBullish

Bearish (25%)

The manager expresses cautious optimism about markets, noting solid gains in 2024 and post-election optimism about deregulation and tax cuts, but also acknowledges concerns about inflation, tariffs, and political uncertainty. The outlook is constructive but tempered by multiple risk factors.

Risk Appetite

15%

DefensiveAggressive

Defensive (15%)

The portfolio shows selective risk appetite with new position initiations but also notable exits and trims. The manager is trimming highly valued securities and being selective about deployment, indicating a measured approach rather than aggressive risk-taking.

Capital Deployment

5%

De-riskingDeploying

De-risking (5%)

The quarter showed balanced activity with three new position initiations offset by three exits and several trims. This represents portfolio rotation rather than net deployment, as proceeds from sales appear to fund new purchases without significant cash level changes.

Forward Guidance

30%

CautiousExpansionary

Cautious (30%)

The manager expresses strengthened confidence in technology holdings and sees attractive healthcare opportunities, indicating a mild deployment bias. However, they're also monitoring policy changes carefully and being selective, suggesting cautious optimism rather than aggressive deployment.

Language Signal

20%

BearishBullish

Bearish (20%)

The letter contains balanced language with opportunities mentioned (AI adoption, healthcare valuations, profit cycles) alongside risks (inflation, political uncertainty, cyclical pressures). Slightly more opportunity-focused language but well-balanced overall.

Perceived Risk

65%

Low RiskElevated

Elevated Risk (65%)

The manager identifies multiple specific risks including inflationary pressures from tariffs, trade war concerns, political uncertainty from Trump administration policy changes, and sector-specific headwinds. These risks are discussed in detail with meaningful analysis of potential impacts.

Opportunity Density

60%

ScarceAbundant

Selective (60%)

The manager sees selective opportunities in defined areas, particularly AI-enabled technology and healthcare biotech, while noting that valuations are 'more reasonable, albeit not cheap.' The environment requires selectivity but offers identifiable opportunities in specific sectors.

Time Horizon

70%

Short-TermLong-Term

Decade+ (70%)

The investment process focuses on profit cycles and franchise characteristics with a multi-year outlook. The manager discusses companies being 'early in their lifecycle' and expects profit acceleration 'this year' for biotech holdings, indicating a 2-3 year investment horizon for thesis realization.