Here’s Why Artisan Global Took Profits in Cintas Corp. (CTAS)

Artisan Partners Limited Partnership, a high value-added investment management firm, published its ‘Artisan Global Discovery Fund’ fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 16.95% was recorded by its Investor Class: APFDX, 17% by its Advisor Class: APDDX, and 17.05% by its Institutional Class: APHDX, in the fourth quarter of 2020, outperforming its MSCI All Country World benchmark that delivered a 14.68% return in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Artisan Global Discovery Fund, in their Q4 2020 investor letter, mentioned Cintas Corporation (NASDAQ: CTAS) and emphasized their views on the company. Cintas Corporation is a Cincinnati, Ohio-based business services company that currently has a $37.6 billion market capitalization. Since the beginning of the year, CTAS delivered a -1.56% return, but its 12-month gains are up by 95.50%. As of March 16, 2021, the stock closed at $347.95 per share.

Here is what Artisan Global Discovery Fund has to say about Cintas Corporation in their Q4 2020 investor letter:

“We concluded our campaigns in Cintas during Q4. We have held Cintas since the portfolio’s inception on the thesis that the acquisition of G&K created significant opportunities for revenue and cost synergies. We had high confidence in Cintas’ management team to achieve those synergies, and we have been rewarded accordingly for that conviction. We think the stock’s valuation now more appropriately reflects the strength of the franchise and profit cycle, and therefore we ended our successful campaign.”

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Our calculations show that Cintas Corporation (NASDAQ: CTAS) 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, Cintas Corporation was in 36 hedge fund portfolios, compared to 38 funds in the third quarter. CTAS delivered a 9.85% 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.