Here’s Why Artisan Partners Trimmed its DexCom (DXCM) Position

Artisan Partners, a high value-added investment management firm, published its ‘Artisan Mid Cap Fund’ fourth quarter 2021 investor letter – a copy of which can be downloaded here. A return of -0.72% was recorded by its Investor Class: ARTMX, -0.68% by its Advisor Class: APDMX, and -0.66% by its Institutional Class: APHMX, in the fourth quarter of 2021, all underperforming the Russell Midcap® Growth Index that delivered a 2.85% return, and the Russell Midcap® Index that was up by 6.44% for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Artisan Mid Cap Fund, in its Q4 2021 investor letter, mentioned DexCom, Inc. (NASDAQ: DXCM) and discussed its stance on the firm. DexCom, Inc. is a San Diego, California-based medical device company with a $37.9 billion market capitalization. DXCM delivered a -27.19% return since the beginning of the year, while its 12-month returns are down by -5.12%. The stock closed at $390.96 per share on February 22, 2022.

Here is what Artisan Mid Cap Fund has to say about DexCom, Inc. in its Q4 2021 investor letter:

“We also trimmed our position in Dexcom. Dexcom is executing well, adding a record number of new patients as it rolls out continuous glucose monitoring (CGM) across the globe. We believe the company’s growth could accelerate further once it launches its new G7 CGM—60% smaller than G6, fully disposable, interoperable with a variety of insulin delivery technologies—in 2022. We believe the company is well positioned to continue penetrating the Type 1 diabetes market and drive adoption in the much larger Type 2 diabetes market, where data supporting the clinical and economic case for CGM sensors is building. That said, shares have been rewarded for this strong fundamental performance and outlook, and we trimmed our position as it neared our PMV estimate.”

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Our calculations show that DexCom, Inc. (NASDAQ: DXCM) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. DXCM was in 71 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 53 funds in the previous quarter. DexCom, Inc. (NASDAQ: DXCM) delivered a -36.74% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on DXCM in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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