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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
|---|---|---|---|---|---|---|---|
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"Artemis US Select outperformed through stock selection as markets focused on fundamentals over factors. High-conviction holdings Constellation Energy and Meta drove returns via energy transition and AI themes."
Cormac Weldon's Artemis US Select Fund returned 2.6% in Q3 2023, outperforming the S&P 500's 0.8% return through strong stock selection. The fund benefits from the market's shift toward focusing on individual company fundamentals rather than broad factors. Key contributors included Constellation Energy, a high-conviction nuclear power holding benefiting from energy price volatility and AI-driven data center demand, and Meta, which has evolved from a turnaround story to a growth story with significant AI infrastructure investments. The fund added exposure to freight companies Saia and TFI International, positioned to benefit from Yellow Corp's bankruptcy through improved pricing and volume capture. New position Blackstone offers diversified exposure to alternative assets with multiple growth drivers. The manager sold Kraft Heinz due to weakening pricing power. Looking ahead, higher-for-longer rates pose economic growth risks, but the manager sees continued opportunities in mispriced businesses, particularly in life sciences where cyclical concerns have created value opportunities.
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Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.
Market Conviction
The manager demonstrates high conviction through concentrated positions like Constellation Energy described as one of their highest-conviction holdings, specific position sizing decisions (adding TFI International, selling Kraft Heinz), and detailed thesis explanations for each holding. However, the diversified nature of the portfolio and some hedged language around market conditions prevents a higher score.
Growth Outlook
The manager acknowledges risks from higher-for-longer rates and their chilling impact on economic growth, with persistent wage inflation concerns. However, they maintain a constructive view on finding opportunities in mispriced businesses and expect continued market dispersion to benefit active managers.
Risk Appetite
The fund is selectively adding new positions like Blackstone and TFI International while maintaining high-conviction holdings. Some profit-taking occurred after strong runs, suggesting a balanced approach to risk with selective deployment rather than aggressive positioning.
Capital Deployment
The fund showed modest net deployment by adding new positions in Blackstone and TFI International while taking some profits from strong performers like Constellation Energy. This represents selective capital rotation and modest net deployment rather than aggressive cash deployment or significant de-risking.
Forward Guidance
The manager expresses selective optimism about finding opportunities in mispriced businesses and life sciences, but emphasizes patience and selectivity rather than aggressive deployment. The tone suggests monitoring for opportunities rather than immediate large-scale action.
Language Signal
Language is balanced with both opportunity-focused terms (attractive growth drivers, mispriced businesses, value opportunities) and risk-aware language (chilling impact, uncertain backdrop, risks on the horizon). Slightly more constructive than cautious overall.
Perceived Risk
The manager identifies specific risks including higher-for-longer rates, persistent wage inflation, and their potential chilling impact on economic growth. These are meaningful macro concerns discussed with some detail, though not presented as systemic or tail risks requiring defensive positioning.
Opportunity Density
The manager sees selective opportunities across multiple areas including AI infrastructure, energy transition, freight consolidation, and life sciences value opportunities. While emphasizing selectivity and patience, they identify specific investable themes and mispriced businesses, suggesting a moderately rich opportunity set.
Time Horizon
The manager demonstrates a multi-year investment horizon with holdings like Constellation Energy described as long-term thesis plays and Meta's AI investments expected to generate revenue opportunities over time. The focus on fundamental business quality and willingness to hold through volatility suggests a patient, multi-year approach typical of active equity managers.
