Disappointing Earnings Results Dragged ON Semiconductor Corporation (ON)
Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The final quarter of 2023 saw a continuous fluctuation between recessionary fears and soft-landing optimism. In the fourth quarter, the fund’s Investor Class fund ARTMX returned 8.86%, Advisor Class fund APDMX posted a return of 8.93%, and Institutional Class fund APHMX returned 8.96%, compared to a 14.55% return for the Russell Midcap Growth Index. The portfolio generated a positive absolute return in Q4 but underperformed the Russell Midcap Growth Index due to poor security selection, particularly in health care and information technology. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Artisan Mid Cap Fund featured stocks like ON Semiconductor Corporation (NASDAQ:ON) in the fourth quarter 2023 investor letter. Headquartered in Scottsdale, Arizona, ON Semiconductor Corporation (NASDAQ:ON) provides intelligent sensing and power solutions. On March 6, 2024, ON Semiconductor Corporation (NASDAQ:ON) stock closed at $77.62 per share. One-month return of ON Semiconductor Corporation (NASDAQ:ON) was -3.83%, and its shares lost 4.66% of their value over the last 52 weeks. ON Semiconductor Corporation (NASDAQ:ON) has a market capitalization of $33.169 billion.
Artisan Mid Cap Fund stated the following regarding ON Semiconductor Corporation (NASDAQ:ON) in its fourth quarter 2023 investor letter:
"Along with Argenx, our top detractors for Q4 included two semiconductor companies: Lattice Semiconductor and ON Semiconductor Corporation (NASDAQ:ON). ON Semiconductor is a leading designer and manufacturer of chips used for power management and image sensors. From a battery-electric vehicle standpoint, ON is a leading producer of silicon carbide (SIC) chips. Shares fell after the company reported disappointing earnings results due to headwinds in its automotive segment. While overall auto demand uncertainty due to macroeconomic pressures was expected, we were surprised by SIC demand weakness in its electric vehicle business. Given our view that elevated electric vehicle inventories could drag on results into 2024, we trimmed our position while we wait for signs of resumed growth momentum in this end market."
High angle view of a semiconductor chip against an array of electronics components.
ON Semiconductor Corporation (NASDAQ:ON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, ON Semiconductor Corporation (NASDAQ:ON) was held by 45 hedge fund portfolios, down from 53 in the previous quarter, according to our database.
We discussed ON Semiconductor Corporation (NASDAQ:ON) in another article and shared the list of best small-cap growth stocks to invest in. In addition, please check out our hedge fund investor letters Q4 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.
