Artisan Value Fund: “We Believe Cigna (CI) is Currently Trading at an Attractive Valuation”

Artisan Partners Limited Partnership, a high value-added investment management firm, published its ‘Artisan Value Fund’ fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 20% was recorded by its Investor Class: ARTLX, 20.05% by its Advisor Class: APDLX, and 20.07% by its Institutional Class: APHLX, in the fourth quarter of 2020, all outperformed its Russell 1000 Value Benchmark that delivered a 16.25% return and its Russel 1000 Index that was up by 13.69% in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Artisan Value Fund, in their Q4 2020 investor letter, mentioned Cigna Corporation (NYSE: CI) and emphasized their views on the company. Cigna Corporation is a Bloomfield, Connecticut-based global health service company that currently has an $85.7 billion market capitalization. Since the beginning of the year, CI delivered a 17.70% return, extending its 12-month gains to 72.44%. As of March 18, 2021, the stock closed at $243.82 per share.

Here is what Artisan Value Fund has to say about Cigna Corporation in their Q4 2020 investor letter:

“New purchases include Cigna. Cigna is a leading managed care company which operates through the following major segments: health services, integrated medical, international markets and group disability. It’s one of the few managed care organizations in the United States with the scale and size to compete effectively. Cigna has recently focused on deleveraging its balance sheet and further diversifying its business, after completing the Express Scripts acquisition in late 2018. Additionally, the company has partnered with Amazon, which will offer two new pharmacy options—including a self-pay offering. Cigna will administer the self-pay option through its health services division Evernorth. The partnership should be one of many strong earnings drivers for Cigna, which we believe is currently trading at an attractive valuation.”

Valeri Potapova/

Our calculations show that Cigna Corporation (NYSE: CI) 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, Cigna Corporation was in 57 hedge fund portfolios, compared to 62 funds in the third quarter. CI delivered a 24.33% return in the past 3 months.