Here’s Why Artisan Small Cap Trimmed their Cree Inc. (CREE) Position

Artisan Partners Limited Partnership, a high value-added investment management firm, published its ‘Artisan Small Cap Fund’ fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 27.07% was recorded by its Investor Class: ARTSX, 27.14% by its Advisor Class: APDSX, and 27.15% by its Institutional Class: APHSX, in the fourth quarter of 2020, all below its Russell 2000 Growth Benchmark that delivered a 29.61% return and its Russel 2000 Index that was up by 31.37% in 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 their Q4 2020 investor letter, mentioned Cree, Inc. (NASDAQ: CREE) and emphasized their views on the company. Cree, Inc. is a Durham, North Carolina-based manufacturer and marketer of semiconductors that currently has a $12.1 billion market capitalization. Since the beginning of the year, CREE delivered a -0.45% return, extending its 12-month gains to 179.04%. As of March 18, 2021, the stock closed at $105.42 per share.

Here is what Artisan Small Cap Fund has to say about Cree, Inc. in their Q4 2020 investor letter:

“We also trimmed our position in Cree. Cree is a producer of semiconductors used in electric vehicles (EVs). Investors are increasingly recognizing Cree’s critical role as the electrification of autos accelerates. In our view, we are still in the early innings of this implementation which could accelerate quickly in the coming years as EVs are expected to reach price parity with internal combustion engine vehicles. However, with shares of Cree appreciating meaningfully in Q4 and beyond our PMV estimate, we pared our exposure accordingly.”


Our calculations show that Cree, Inc. (NASDAQ: CREE) 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, Cree, Inc. was in 33 hedge fund portfolios, compared to 30 funds in the third quarter. CREE delivered a 9.98% 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.