Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, its Investor Class fund ARTSX returned -7.98%, Advisor Class fund APDSX posted a return of -7.96%, and Institutional Class fund APHSX returned -7.97%, compared to a return of -7.32% for the Russell 2000 Growth Index. From a sector perspective, allocation impacts drove the sector’s underperformance, while security selection was positive. From an allocation perspective, the portfolio was hurt by its lack of exposure to energy and overweight exposure to health care. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Artisan Small Cap Fund highlighted stocks like Shockwave Medical, Inc. (NASDAQ:SWAV) in the third quarter 2023 investor letter. Headquartered in Santa Clara, California, Shockwave Medical, Inc. (NASDAQ:SWAV) is a medical device company. On November 30, 2023, Shockwave Medical, Inc. (NASDAQ:SWAV) stock closed at $174.55 per share. One-month return of Shockwave Medical, Inc. (NASDAQ:SWAV) was -19.07%, and its shares lost 30.15% of their value over the last 52 weeks. Shockwave Medical, Inc. (NASDAQ:SWAV) has a market capitalization of $6.44 billion.
Artisan Small Cap Fund made the following comment about Shockwave Medical, Inc. (NASDAQ:SWAV) in its Q3 2023 investor letter:
“Among our top detractors were Lattice Semiconductor, Shockwave Medical, Inc. (NASDAQ:SWAV) and Exact Sciences. Shockwave is a medical device company developing and commercializing products for calcified cardiovascular disease. The company is a leader in using miniaturized lithotripsy (soundwave) technology to break up heavy calcification in arteries, enabling safer and more effective treatment of cardiovascular disease. Shockwave devices are increasingly being used in both coronary artery and peripheral artery indications, and we see significant room for continued growth in these areas. Meanwhile, the company continues to invest in new products to extend the usefulness of intravenous lithotripsy in other indications, and it is making long-term plans to introduce a novel therapy for refractory angina. Unlike some high-growth medical device franchises, Shockwave is already profitable, and we expect its strong top-line growth to support margin expansion. However, despite the positive product cycle momentum, the stock’s recent performance tells a different story. The market appears concerned that the rapid growth of GLP-1 diabetes/obesity drugs will reduce demand for cardiovascular disease management technologies. However, we think the public health benefits of obesity therapies, while real, are unlikely to materially restrain Shockwave’s growth opportunities for many years to come, and we remain invested.”
A healthcare professional examining an X-ray of a patient with a serious cardiovascular disease.
Shockwave Medical, Inc. (NASDAQ:SWAV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Shockwave Medical, Inc. (NASDAQ:SWAV) at the end of third quarter which was 40 in the previous quarter.
We discussed Shockwave Medical, Inc. (NASDAQ:SWAV) in another article and shared Baron Health Care Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.