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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Artemis US Select Fund 2024 Q1 Investor Letter | Buyside Digest

Back to Fund Profile (Artemis US Select Fund)

Primary Source Intelligence • Q1 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

Annualized+21.2%

Digest Analysis

Quick Take

"Strong Q1 outperformance driven by stock selection, particularly underweighting Apple and overweighting Meta. Added positions in Norfolk Southern, Allstate, and Core & Main while trimming winners."

Executive Summary

The Artemis US Select Fund delivered strong outperformance in Q1 2024, returning 17.3% versus the S&P 500's 11.6%, driven primarily by stock selection rather than sector allocation. The fund's underweight position in Apple proved beneficial as the manager views the company as having limited growth prospects due to iPhone dependence and China exposure challenges. Conversely, the overweight position in Meta paid off as the company leveraged its AI capabilities to recover advertising revenue following Apple's privacy changes. The fund added new positions in Norfolk Southern (rail freight recovery), Allstate (benefiting from positive auto insurance pricing), and continued building Core & Main (water infrastructure beneficiary). Performance was supported by existing holdings including Saia, Constellation Energy, Western Digital, and Eagle Materials. The manager trimmed some strong performers to take profits while exiting Humana due to deteriorating fundamentals. Looking forward, the manager remains optimistic despite interest rate uncertainty, focusing on company-specific opportunities across a diverse pipeline of ideas while maintaining flexibility on macro outcomes.

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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 (underweight Apple, overweight Meta), clear thesis explanations for each holding, and decisive actions like exiting Humana and adding three new positions. However, the diversified portfolio with 14+ named positions and acknowledgment of macro uncertainty prevents this from reaching high conviction territory.

Growth Outlook

25%

BearishBullish

Bearish (25%)

The manager acknowledges the S&P 500's resilience and strong performance, noting the economy looks to be in fine shape. However, this is tempered by awareness of interest rate uncertainty and some signs of fraying at the margin, resulting in a mildly positive but cautious outlook.

Risk Appetite

40%

DefensiveAggressive

Defensive (40%)

The fund is actively adding new positions (Norfolk Southern, Allstate, Core & Main) and maintaining concentrated bets like the Meta overweight, indicating a risk-on tilt. However, the manager is also taking profits by trimming strong performers, suggesting a balanced approach rather than maximum risk appetite.

Capital Deployment

25%

De-riskingDeploying

De-risking (25%)

The fund added three new positions (Norfolk Southern, Allstate, continued adding Core & Main) while trimming only two positions (TFI International, Eagle Materials) and exiting one (Humana). This represents net deployment activity, though the trimming of winners suggests measured rather than aggressive deployment.

Forward Guidance

30%

CautiousExpansionary

Cautious (30%)

The manager expresses optimism about prospects moving into Q2 and mentions a healthy pipeline of ideas, indicating a selective deployment bias. However, the emphasis on not being wedded to particular economic outcomes and focusing on microeconomics suggests measured rather than aggressive deployment intentions.

Language Signal

20%

BearishBullish

Bearish (20%)

Language includes positive terms like optimistic, attractive opportunities, healthy pipeline, and fine shape for the economy. However, this is balanced by risk language including uncertain interest rates, signs of fraying, and various market challenges, resulting in slightly more bullish than bearish directional language overall.

Perceived Risk

45%

Low RiskElevated

Moderate Risk (45%)

The manager acknowledges several specific risks including interest rate uncertainty, regional banking scares, geopolitical tensions, and stubborn inflation elements. However, these are discussed as manageable challenges rather than systemic threats, and the overall tone suggests these risks are not central concerns for the investment approach.

Opportunity Density

70%

ScarceAbundant

Abundant (70%)

The manager explicitly states there is still a very healthy pipeline of ideas coming from a wide range of sectors and expresses optimism about finding opportunities through company microeconomics. The addition of three new positions and continued focus on stock selection suggests a relatively rich opportunity set.

Time Horizon

65%

Short-TermLong-Term

Multi-Year (65%)

The manager discusses multi-year themes like water infrastructure investment, long-term growth stories (Zoetis with Librela launch), and long-term bullish views on construction. However, the focus on quarterly performance, trimming winners, and responding to near-term developments suggests a medium-term 1-3 year investment horizon rather than permanent capital approach.