Here’s Why Artisan Partners Decided to End its Successful Campaign in Teledyne (TDY)

Artisan Partners, a high value-added investment management firm, published its ‘Artisan Small Cap Fund’ first quarter 2021 investor letter – a copy of which can be downloaded here. A return of -5.02% was recorded by its Investor Class: ARTSX, -4.99% by its Advisor Class: APDSX, and -4.95% by its Institutional Class: APHSX for the fourth quarter of 2020, all below the Russell 2000® Growth Index that delivered a 4.88% return and the Russell 2000® Index that was up by 12.70% for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Artisan Small Cap Fund, in its Q1 2021 investor letter, mentioned Teledyne Technologies Incorporated (NYSE: TDY), and shared their insights on the company. Teledyne Technologies Incorporated is a Thousand Oaks, California-based industrial conglomerate company that currently has a $19 billion market capitalization. Since the beginning of the year, TDY delivered a 4.45% return, while its 12-month gains are up by 22.95%. As of May 18, 2021, the stock closed at $409.43 per share.

Here is what Artisan Small Cap Fund has to say about Teledyne Technologies Incorporated in its Q1 2021 investor letter:

Teledyne Technologies is a supplier of ultra-sensitive components and sensors to various end markets. We initiated our campaign in 2012 as the company was divesting its defense sector-related business to transition to a more asset-light business exposed to several compelling secular trends. Over the course of our campaign, the company repositioned its business into higher-growth and higher-margin areas such as instrumentation, digital imaging and defense electronics. In Q1, Teledyne announced its intention to acquire FLIR Systems, the largest provider of thermal imaging systems for military and industrial applications. We expect the combined entity to far exceed our small-cap market cap mandate, and we ended our successful campaign.”

Our calculations show that Teledyne Technologies Incorporated (NYSE: TDY) 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, Teledyne Technologies Incorporated was in 28 hedge fund portfolios, compared to 31 funds in the third quarter. TDY delivered a 1.54% 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.