Here’s Why Artisan Partners Small Cap Fund Decided to Exit Chegg (CHGG)
Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, its Investor Class fund ARTSX returned 1.10%, Advisor Class fund APDSX posted a return of 1.19%, and Institutional Class fund APHSX returned 1.19%, compared to a return of 7.05% for the Russell 2000 Growth Index. Year-to-date, ARTSX, APDSX, and APHSX returned 8.78 %, 8.91%, and 8.91%, respectively, compared to a 13.55% return for the benchmark. Despite this year's relative setback, the firm remains bullish on its asset class's long-term prospects. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Artisan Small Cap Fund highlighted stocks like Chegg, Inc. (NYSE:CHGG) in the second quarter 2023 investor letter. Headquartered in Santa Clara, California, Chegg, Inc. (NYSE:CHGG) is a direct-to-student learning platform. On August 29, 2023, Chegg, Inc. (NYSE:CHGG) stock closed at $9.90 per share. One-month return of Chegg, Inc. (NYSE:CHGG) was -2.56%, and its shares lost 49.70% of their value over the last 52 weeks. Chegg, Inc. (NYSE:CHGG) has a market capitalization of $1.142 billion.
Artisan Small Cap Fund made the following comment about Chegg, Inc. (NYSE:CHGG) in its second quarter 2023 investor letter:
"Along with Catalent, we ended our investment campaigns in Chegg, Inc. (NYSE:CHGG) and Option Health Care. Chegg is a digital education platform. Shares have been under pressure as the company has reported disappointing fundamental results. Our thesis centered on the belief that there were several tailwinds behind the company’s profit cycle—international expansion, opportunities to cross-sell existing users and longer term changes in higher education (e.g., more remote learning, more focus on student outcomes and pressure on tuition). However, we have been disappointed with the company’s execution and decided to exit the position."
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Chegg, Inc. (NYSE:CHGG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Chegg, Inc. (NYSE:CHGG) at the end of second quarter which was 27 in the previous quarter.
We discussed Chegg, Inc. (NYSE:CHGG) in another article and shared the list of biggest EdTech companies in the world. In addition, please check out our hedge fund investor letters Q2 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.
