Institutional Research Archive

Hedge Fund Letters Archive

Browse the world's most comprehensive database of hedge fund investor letters, sorted by recent quarter. Access primary source research from leading institutional managers.

Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

Home Letters Funds Account

Artemis US Select Fund 2024 Q2 Investor Letter | Buyside Digest

Back to Fund Profile (Artemis US Select Fund)

Primary Source Intelligence • Q2 2024 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+2.4%

YTD+20.1%

Annualized+21.2%

Digest Analysis

Quick Take

"Nvidia remains the top contributor despite growing manager caution about valuations. The fund continues finding AI infrastructure opportunities while reducing mega-cap underweights and adding healthcare exposure."

Executive Summary

The Artemis US Select Fund returned 2.4% in Q2 2024, underperforming the S&P 500's 4.2% return but maintaining strong year-to-date performance of 20.1% versus the index's 16.3%. The quarter was dominated by mega-cap technology stocks, particularly Nvidia, which added $800 billion in market capitalization. The fund's overweight position in Nvidia since Q2 2023 has been the top contributor over one year, though the manager is becoming more cautious about analyst optimism. Key contributors included AI infrastructure beneficiaries like Coherent, Micron, and Western Digital, which supply critical components for data centers and AI model training. Detractors included Builders FirstSource and Saia, though the manager maintains conviction in their tailwinds. Portfolio actions included reducing underweights in Apple and Alphabet due to AI integration opportunities, adding healthcare exposure through Elevance Health and Stryker, and trimming Meta and Nvidia after strong performance. The manager sees continued opportunities across sectors with asymmetric risk-reward profiles while acknowledging the potential for broader market participation beyond the Magnificent 7.

Unlock Full Institutional Analysis

Sign in or create a free account to unlock full commentary, extracted equity pitches, and direct outbound manager source links with your 3 quarterly credits.

Sign In to Unlock (3 Free Credits)View Pricing Tiers

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

68%

CautiousHigh

Moderate (68%)

The manager demonstrates moderate-high conviction through specific position sizing language ('overweight position,' 'top contributor,' 'largest position'), clear portfolio actions with named holdings, and explicit conviction statements about individual companies. However, the diversified nature of the fund and hedged language about market conditions prevents a higher score.

Growth Outlook

25%

BearishBullish

Bearish (25%)

The manager acknowledges strong year-to-date performance and sees continued opportunities, but expresses growing caution about technology valuations and analyst optimism. The outlook is constructive but measured, with recognition of both opportunities and risks in the current environment.

Risk Appetite

15%

DefensiveAggressive

Defensive (15%)

The fund is taking profits on strong performers like Meta and Nvidia while reducing underweights in Apple and Alphabet. This suggests a more balanced approach rather than aggressive risk-taking, with selective positioning adjustments rather than broad risk-on behavior.

Capital Deployment

5%

De-riskingDeploying

De-risking (5%)

The portfolio activity represents rotation rather than net deployment - selling Meta and Nvidia to fund purchases in Apple, Alphabet, Elevance Health, and Stryker. No cash level changes are mentioned, indicating this is capital reallocation rather than new money being put to work.

Forward Guidance

30%

CautiousExpansionary

Cautious (30%)

The manager is actively deploying capital into healthcare and adjusting technology weights, showing a selective deployment bias. However, the approach is measured rather than aggressive, with careful risk-reward assessment driving decisions.

Language Signal

20%

BearishBullish

Bearish (20%)

Language includes positive terms like 'opportunity,' 'attractive tailwinds,' and 'robust fundamental growth,' but is balanced with caution about 'optimism,' 'more wary,' and 'more balanced risk-reward.' The net balance is mildly positive but measured.

Perceived Risk

45%

Low RiskElevated

Moderate Risk (45%)

The manager acknowledges standard market risks including inflation persistence, Fed policy uncertainty, and sector concentration in mega-cap tech. Risks are mentioned but not dwelled upon extensively, representing moderate risk awareness without alarm.

Opportunity Density

65%

ScarceAbundant

Abundant (65%)

The manager sees 'a breadth of opportunity in a variety of sectors' and continues to find attractive opportunities within large index constituents. The tone suggests selective but available opportunities across multiple areas, indicating a reasonably rich opportunity set.

Time Horizon

70%

Short-TermLong-Term

Decade+ (70%)

The fund has held Nvidia since Q2 2023 and maintains positions through volatility based on long-term tailwinds. The manager discusses fundamental growth and structural themes like AI infrastructure, suggesting a multi-year investment horizon with patience for thesis development.