Here’s Why Artisan Partners Pared its Position in LPL Financial Holdings (LPLA)

Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, its Investor Class fund ARTMX returned -22.47%, Advisor Class fund APDMX posted a return of -22.43%, and Institutional Class fund APHMX returned -22.40%, compared to a return of -21.07% for the Russell Midcap Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Artisan Partners discussed stocks like LPL Financial Holdings Inc. (NASDAQ:LPLA) in the second quarter investor letter. Headquartered in San Diego, California, LPL Financial Holdings Inc. (NASDAQ:LPLA) is a platform provider for brokerage and investment advisory services. On September 26, 2022, LPL Financial Holdings Inc. (NASDAQ:LPLA) stock closed at $215.02 per share. One-month return of LPL Financial Holdings Inc. (NASDAQ:LPLA) was -3.33% and its shares gained 36.08% of their value over the last 52 weeks. LPL Financial Holdings Inc. (NASDAQ:LPLA) has a market capitalization of $17.152 billion.

Here is what Artisan Partners specifically said about LPL Financial Holdings Inc. (NASDAQ:LPLA) in its Q2 2022 investor letter:

LPL Financial Holdings Inc. (NASDAQ:LPLA) is the largest independent broker-dealer in the US, and the largest provider of outsourced wealth management services to banks. The company equips over 17k financial advisors with the tools—research, technology, compliance, administrative support—to grow their businesses and help their retail clients with wealth management and financial planning. In recent years, a new leadership team has invested to improve advisor technology and remove friction within advisors’ workflows, driving a 50% increase in productivity while increasing advisor retention to ~98%. We believe LPL is well-positioned to capture further market share and benefit from a migration of advisors away from wire houses to the independent channel. We are also optimistic outsourcing contract wins with third party banks and traction in the company’s new service offerings could further accelerate growth. Lastly, LPL has begun benefiting from higher interest rates. However, as the share price now reflects more of these tailwinds, we modestly pared our position.”

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LPL Financial Holdings Inc. (NASDAQ:LPLA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held LPL Financial Holdings Inc. (NASDAQ:LPLA) at the end of the second quarter which was 47 in the previous quarter.

We discussed LPL Financial Holdings Inc. (NASDAQ:LPLA) in another article and shared Baron Funds’ views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

Disclosure: None. This article is originally published at Insider Monkey.