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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Artemis US Select Fund 2025 Q1 Investor Letter | Buyside Digest

Back to Fund Profile (Artemis US Select Fund)

Primary Source Intelligence • Q1 2025 Letter Analysis

Artemis US Select Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Artemis US Select Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD-14.7%

YTD-14.7%

Annualized+21.2%

Positioning StanceConstructive

Market CapLarge Cap

GeographyUS

Digest Analysis

Quick Take

"Managers adopted defensive positioning, reducing cyclical exposure while adding stable earners like Coca-Cola. Healthcare and industrials weighed on performance while technology underweights helped marginally."

Executive Summary

The Artemis US Select Fund returned -14.7% in Q1 2025, underperforming the S&P 500's -7.2% return amid significant market disruption from Trump's tariff announcements and the emergence of Chinese AI competitor DeepSeek. The managers believe tariffs are likely permanent as a revenue generation mechanism, prompting a defensive repositioning away from economically sensitive sectors. Healthcare and industrial holdings proved most damaging to performance, while an underweight to technology provided marginal benefit. Key detractors included trucking company Saia, drug delivery systems manufacturer West Pharmaceutical Services, and building materials producer Vulcan Materials, all facing economic headwinds. Positive contributors included insurance company Allstate and payments processor Fiserv. The managers reduced exposure to cyclically sensitive companies like Eagle Materials and Goldman Sachs while increasing positions in stable earners like Coca-Cola and Pacific Gas & Electric. Looking forward, they maintain a cautious stance until trade policy uncertainty resolves, planning to capitalize on unwarranted share price declines while prioritizing companies with predictable earnings profiles.

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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

75%

CautiousHigh

High Conviction (75%)

High conviction evident in decisive portfolio actions including complete exits from positions like West Pharmaceutical Services, significant reductions in cyclical exposure, and clear strategic positioning around tariff policy. Strong conviction in defensive thesis and specific stock selections.

Growth Outlook

20%

BearishBullish

Bearish (20%)

The managers express significant concern about market uncertainty from tariffs and trade policy, describing the environment as requiring caution and defensive positioning. They acknowledge the challenging conditions but maintain some optimism for eventual stabilization.

Risk Appetite

15%

DefensiveAggressive

Defensive (15%)

Clear defensive positioning with reduced exposure to economically sensitive companies and increased allocation to stable, predictable earnings companies. The managers explicitly state they are taking a more cautious approach and have adjusted the portfolio for uncertain conditions.

Capital Deployment

20%

De-riskingDeploying

De-risking (20%)

Net capital pullback evident through position reductions in multiple holdings (Saia, Eagle Materials, Goldman Sachs) and complete exit from West Pharmaceutical Services. While some new positions were initiated (Coca-Cola) and existing positions increased (Pacific Gas & Electric), the overall activity suggests defensive de-risking.

Forward Guidance

30%

CautiousExpansionary

Cautious (30%)

While maintaining caution, the managers express intention to take advantage of falling share prices where declines are unwarranted and expect to add back to positions when conditions become clearer, showing some forward-looking optimism despite near-term defensiveness.

Language Signal

25%

BearishBullish

Bearish (25%)

Language reflects significant concern about risks and uncertainty, with frequent mentions of challenges, disruption, and the need for caution. However, balanced by discussions of opportunities and selective optimism about specific holdings and future positioning.

Perceived Risk

80%

Low RiskElevated

Elevated Risk (80%)

High perceived risk from multiple sources including tariff policy uncertainty, trade war implications, supply chain disruptions, and broad market volatility. Managers explicitly acknowledge the challenging environment and position defensively in response to these systemic risks.

Opportunity Density

40%

ScarceAbundant

Selective (40%)

Limited opportunity set acknowledged with managers focusing on selective opportunities in stable companies while avoiding broad market exposure. They mention plans to take advantage of unwarranted declines but overall suggest a constrained opportunity environment until clarity emerges.

Time Horizon

60%

Short-TermLong-Term

Multi-Year (60%)

Medium-term perspective evident in willingness to wait for policy clarity and expectation to add back to positions at opportune times. The five-year fund objective and discussion of long-term drivers for companies like Avantor suggest patient capital approach despite near-term defensiveness.