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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
|---|---|---|---|---|---|---|---|
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"Artemis US Select outperformed with 10.4% Q2 returns driven by balanced stock picking across housing recovery and AI themes. Building materials companies benefited from strong housing starts while tech holdings Nvidia and Meta delivered on AI applications."
Cormac Weldon's Artemis US Select Fund delivered strong Q2 2023 performance of 10.4% versus 5.8% for the S&P 500, driven by balanced stock selection across sectors rather than just technology concentration. The fund benefited from recovery themes in housing and infrastructure, with building materials companies Eagle Materials, Builders FirstSource, and Vulcan Materials performing well as housing starts surprised positively despite high mortgage rates. Technology holdings including Nvidia, Meta Platforms, Amazon, and Oracle also contributed, with AI applications driving results at Meta and Nvidia providing strong AI business guidance. The manager initiated new positions in railroad CSX, credit rating agency Moody's, and medical device company Dexcom, viewing each as offering attractive entry points. Key risks include ongoing recession uncertainty and tighter banking conditions following Silicon Valley Bank's collapse. The portfolio continues targeting companies recovering from Covid disruption while maintaining exposure to long-term infrastructure and technology themes. Weldon sees continued breadth of opportunity across markets despite economic uncertainty.
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Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.
Market Conviction
Manager demonstrates moderate-high conviction through specific position sizing language (overweight Nvidia), detailed thesis explanations for 14 named holdings, and willingness to initiate new positions despite uncertainty. However, the diversified portfolio approach and acknowledgment of multiple scenarios prevents a higher score.
Growth Outlook
Manager acknowledges recession uncertainty but sees continued breadth of opportunity across markets. Housing data continues to surprise positively and some recovery themes are materializing, but economic outlook remains mixed with rate increase expectations.
Risk Appetite
Portfolio is actively deployed with new position initiations in CSX, Moody's, and Dexcom. Manager increased Nvidia exposure and maintains conviction in recovery names like Avantor despite near-term headwinds, indicating moderate risk appetite.
Capital Deployment
Manager initiated three new positions (CSX, Moody's, Dexcom) and increased Nvidia exposure during the quarter, indicating moderate deployment activity. No cash level data provided, but new position additions suggest selective capital deployment.
Forward Guidance
Manager states they continue to see breadth of opportunity and are selectively adding positions, but acknowledges uncertainty about recession outcomes. Tone is cautiously constructive rather than aggressively bullish.
Language Signal
Language includes positive terms like 'opportunity,' 'attractive,' 'outperform,' and 'strong performance' but balanced with risk language around recession uncertainty, tough comparisons, and economic headwinds. Slightly more constructive than bearish overall.
Perceived Risk
Manager acknowledges recession uncertainty, banking sector stress from SVB collapse, and shifting rate expectations. However, risks are mentioned as context rather than central concerns, and the manager continues to see opportunities despite these headwinds.
Opportunity Density
Manager explicitly states they 'continue to see a breadth of opportunity across the market' and initiated multiple new positions during the quarter. Recovery themes in housing and technology are providing selective opportunities despite macro uncertainty.
Time Horizon
Manager discusses multi-year themes including infrastructure bill tailwinds, long-term AI business development, and recovery from Covid disruption. References to 'years to come' for Dexcom growth drivers and long-term quality of Moody's business model indicate extended investment horizons.
