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Artisan Mid Cap: “AMD Appreciated Far Beyond Our Mid-Cap Market Cap Mandate”

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Jose Karlo Mari Tottoc
·3 min read
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Artisan Partners Limited Partnership, a high value-added investment management firm, published its ‘Artisan Mid Cap Fund’ fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 16.82% was recorded by its Investor Class: ARTMX, 16.87% by its Advisor Class: APDMX, and 16.89% by its Institutional Class: APHMX, in the fourth quarter of 2020, all below its Russell Midcap Growth Benchmark that delivered a 19.02% return and its Russel Midcap Index that was up by 19.91% in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Artisan Mid Cap Fund, in their Q4 2020 investor letter, mentioned Advanced Micro Devices, Inc. (NASDAQ: AMD) and emphasized their views on the company. Advanced Micro Devices, Inc. is a California-based semiconductor company that currently has a $99.8 billion market capitalization. Since the beginning of the year, AMD delivered a -9.90% return, but its 12-month gains are up by 111.22%. As of March 17, 2021, the stock closed at $82.63 per share.

Here is what Artisan Mid Cap Fund has to say about Advanced Micro Devices, Inc. in their Q4 2020 investor letter:

"We also exited our positions in Advanced Micro Devices. Our investment campaign in Advanced Micro Devices (AMD) began in the second half of 2018, and we have seen a new management team reinvigorate the company’s product portfolio of microprocessors for PCs and servers, graphics processors, and video game consoles. These new, higher-margin products have helped the company partially close its margin gap with peers and capture share from market leader Intel. While we believe there is meaningful runway for further share gains and margin expansion, AMD has appreciated far beyond our mid-cap market cap mandate, and we exited our position."

Iaroslav Neliubov/Shutterstock.com

Our calculations show that Advanced Micro Devices, Inc. (NASDAQ: AMD) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Advanced Micro Devices, Inc. was in 74 hedge fund portfolios, compared to 71 funds in the third quarter. AMD delivered a -14.68% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

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Disclosure: None. This article is originally published at Insider Monkey.