Artisan Partners Trimmed its PagSeguro (PAGS) Position to Fund Higher Conviction Holdings

Artisan Partners, a high value-added investment management firm, published its ‘Artisan Mid Cap Fund’ first quarter 2021 investor letter – a copy of which can be downloaded here. A return of -2.36% was recorded by its Investor Class: ARTMX, -2.32% by its Advisor Class: APDMX, and -2.30% by its Institutional Class: APHMX, in the fourth quarter of 2020, all below the Russell Midcap® Growth Index that delivered a -0.57% return and the Russell Midcap® Index that was up by 8.14% for 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 its Q1 2021 investor letter, mentioned PagSeguro Digital Ltd. (NYSE: PAGS), and shared their insights on the company. PagSeguro Digital Ltd. is a Brazil-based IT service management company that currently has a $13.8 billion market capitalization. Since the beginning of the year, PAGS delivered a -26.13% return, while its 12-month gains are up by 50.13%. As of May 06, 2021, the stock closed at $42.02 per share.

Here is what Artisan Mid Cap Fund has to say about PagSeguro Digital Ltd. in its Q1 2021 investor letter:

“We also reduced our position in PagSeguro. PagSeguro is making good progress establishing a fast-growing digital bank and expanding its Brazilian payments business despite the pandemic. However, the company’s growth initiatives will require another year of heavy investment spending in 2021. This comes as Brazil’s progress combatting COVID-19 trails many major economies’, casting a cloud over the broader economic outlook. Given these potential headwinds, we trimmed our position to fund higher conviction holdings.”


Our calculations show that PagSeguro Digital Ltd. (NYSE: PAGS) 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, PagSeguro Digital Ltd. was in 25 hedge fund portfolios, compared to 24 funds in the third quarter. PAGS delivered a -23.93% 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.