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 SVB Financial Group (NASDAQ: SIVB) and emphasized their views on the company. SVB Financial Group is a California-based commercial banking company that currently has a $28.3 billion market capitalization. Since the beginning of the year, SIVB delivered a 40.43% return, massively extending its 12-month gains to 261.86%. As of March 17, 2021, the stock closed at $544.64 per share.
Here is what Artisan Mid Cap Fund has to say about SVB Financial Group in their Q4 2020 investor letter:
“We started new investment campaigns in SVB Financial Group. We believe SVB is one of the strongest banking franchises due to its unique position within the tech and life sciences innovation economy, providing tailored banking services and networking to startups, emerging growth companies and venture capitalists. Profits have been hurt in recent years by falling interest rates and the pandemic. That said, we believe it is plausible rates are bottoming, and banks have generally seen fewer credit problems than expected as the pandemic has played out. However, our thesis is not highly tied to interest rates—we believe SVB will continue compounding asset growth far above industry trends due to its exposure to strong secular trends in technology, life sciences and venture capital investing.”
Our calculations show that SVB Financial Group (NASDAQ: SIVB) 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, SVB Financial Group was in 31 hedge fund portfolios, compared to 27 funds in the third quarter. SIVB delivered an impressive 51.99% 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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