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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Artisan Mid Cap Fund 2024 Q2 Investor Letter | Buyside Digest

Back to Fund Profile (Artisan Mid Cap Fund)

Primary Source Intelligence • Q2 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

Annualized+12.51%

Digest Analysis

Quick Take

"Artisan Mid Cap underperformed in Q2 due to weakness in semiconductors, healthcare diagnostics, and financial data services, while restaurants outperformed."

Executive Summary

Artisan Mid Cap Fund generated a negative absolute return and underperformed the Russell Midcap Growth Index in Q2 2024, following strong Q1 performance. Underperformance was driven by modest negative security selection across multiple sectors, particularly from financial data service providers, healthcare diagnostics companies, and semiconductor companies, while restaurant companies provided strength. The portfolio benefited from overweight positions in information technology and communication services but was hurt by healthcare overweight and lack of energy exposure. Top detractors included Lattice Semiconductor, Exact Sciences, and Celsius, while Tyler Technologies, Spotify, and Argenx were top contributors. The manager initiated new positions in CCC Intelligent Solutions, Marvell Technology, and Insmed while exiting Five Below, Roblox, and Pool Corp. Despite near-term cyclical headwinds in semiconductors and software, the team remains patient, believing secular growth drivers will return. They continue focusing on high-quality franchises with compelling valuations and strong medium-to-long-term conviction while maintaining valuation discipline.

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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

68%

CautiousHigh

Moderate (68%)

The manager demonstrates moderate-high conviction through specific position sizing decisions (trimming outperformers, adding to cyclical names), detailed thesis explanations for individual holdings, and clear articulation of the Garden/Crop/Harvest framework. Multiple named positions are discussed with specific rationales, though the diversified nature of the mid-cap portfolio and some hedged language around timing prevents a higher score.

Growth Outlook

38%

BearishBullish

Neutral (38%)

The manager acknowledges multiple uncertainties including geopolitical unrest, elections, slowing economy, and inflation concerns. While they see some positive developments like potential Fed rate cuts, the overall tone reflects caution about the market environment with explicit mentions of uncertainty and challenges ahead.

Risk Appetite

15%

DefensiveAggressive

Defensive (15%)

The portfolio shows selective risk-taking with new position initiations in AI-related companies while trimming outperformers. The manager is 'cautiously adding' to compelling opportunities but maintaining valuation discipline, suggesting a measured approach to risk rather than aggressive deployment or defensive positioning.

Capital Deployment

20%

De-riskingDeploying

De-risking (20%)

The manager initiated three new Garden positions while exiting three holdings, suggesting modest net deployment activity. The language around 'cautiously adding' to compelling opportunities while trimming outperformers indicates selective deployment rather than aggressive cash deployment or significant de-risking.

Forward Guidance

10%

CautiousExpansionary

Cautious (10%)

The manager expresses intent to 'cautiously add' to strong franchises with compelling valuations while staying disciplined on valuation for outperformers. The guidance suggests selective deployment rather than aggressive action, with emphasis on patience and waiting for the right opportunities.

Language Signal

45%

BearishBullish

Balanced (45%)

The letter contains balanced directional language with mentions of 'opportunities' and 'attractive valuations' offset by discussions of 'headwinds,' 'uncertainty,' 'weakness,' and 'challenges.' Risk-related language slightly outweighs opportunity language, but the balance is relatively even.

Perceived Risk

65%

Low RiskElevated

Elevated Risk (65%)

The manager identifies multiple specific risks including inflation persistence, geopolitical unrest, election uncertainty, economic slowdown, and sector-specific headwinds in semiconductors and software. These risks are discussed with meaningful detail and context, indicating moderate-high perceived risk in the environment.

Opportunity Density

55%

ScarceAbundant

Selective (55%)

The manager sees selective opportunities in specific areas, initiating new positions while maintaining that valuations are 'compelling' for certain franchises with short-term headwinds. However, the emphasis on selectivity and patience suggests opportunities require careful screening rather than being broadly abundant.

Time Horizon

70%

Short-TermLong-Term

Decade+ (70%)

The manager explicitly discusses 'medium-to-long-term conviction' and emphasizes looking 'past short-term performance considerations' for 'long-term-focused clients.' The Garden/Crop/Harvest framework suggests multi-year investment horizons, and the willingness to hold through cyclical headwinds indicates a patient, multi-year approach to thesis realization.