Artisan Mid Cap Fund recently released its Q1 2020 Investor Letter, a copy of which you can download below. The fund posted a return of -11.55% for the quarter (investor class), outperforming their benchmark, the Russell Midcap Index which returned -27.07% in the same quarter. You should check out Artisan Mid Cap Fund’s top 5 stock picks which helped them beat the market by nearly 16 percentage points. There weren’t a lot of funds who could deliver these kinds of returns without shorting the market or using aggressive put options.
In the said letter, Artisan Mid Cap Fund highlighted a few stocks and Atlassian Corp Plc (NASDAQ:TEAM) is one of them. Atlassian is a software company known for its issue tracking application Jira. Year-to-date, TEAM stock gained 48.3% and on May 8th it had a closing price of $176.19. Its market cap is of $43.9 billion. Here is what Artisan Mid Cap Fund said:
“Atlassian, a leading provider of innovative, customizable teamcollaboration software tools for organizations of all sizes, is delivering strong subscription growth. Shares have benefited as the company’s business model is relatively defensive in the current environment— asset-light, a salesperson-free distribution model, a 90% recurring revenue base, excellent cash conversion and an ability to move the growth needle from smaller deal wins. We expect the fundamental outlook to remain favorable as low-cost, cloud-based collaboration tools will likely remain in high demand as teams around the world adapt to the current remote working conditions.”
In Q4 2019, the number of bullish hedge fund positions on TEAM stock increased by about 17% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with TEAM’s growth potential.
Disclosure: None. This article is originally published at Insider Monkey.