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 Nuance Communications, Inc. (NASDAQ: NUAN) and emphasized their views on the company. Nuance Communications, Inc. is a Massachusetts-based computer software company that currently has a $12.7 billion market capitalization. Since the beginning of the year, NUAN delivered a 2.02% return, impressively extending its 12-month gains to 217.21%. As of March 17, 2021, the stock closed at $44.98 per share.
Here is what Artisan Mid Cap Fund has to say about Nuance Communications, Inc. in their Q4 2020 investor letter:
“We started new investment campaigns in Nuance Communications in Q4. Nuance Communications is a leader in automated voice transcription technologies. The company’s relatively new management team has spent the past couple of years divesting sub-par businesses, paying down high yield debt and refocusing the company on higher growth, cloud-based recurring revenue opportunities primarily in health care, but also in large enterprises. The company has recently launched Dragon Ambient Experience (DAX), a tool physicians can use to automatically document patient encounters efficiently, accurately and consistently in telehealth and in-office settings. Health care practitioners can spend over 20% of their time documenting, and DAX can virtually eliminate this duty so more time can be dedicated to patient care. DAX is very early in its launch and could be a very meaningful profit cycle driver over time.”
Our calculations show that Nuance Communications, Inc. (NASDAQ: NUAN) 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, Nuance Communications, Inc. was in 60 hedge fund portfolios, compared to 45 funds in the third quarter. NUAN delivered a 4.10% 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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