Artisan Partners, a high value-added investment management firm, published its ‘Artisan Global Discovery Fund’ third quarter 2021 investor letter – a copy of which can be downloaded here. A return of 2.85% was recorded by both its Investor Class: APFDX and Advisor Class: APDDX, and 2.93% by its Institutional Class: APHDX for the third quarter of 2021, all beating the MSCI All Country World Index that delivered a -1.05% return for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.
Artisan Global Discovery Fund, in its Q3 2021 investor letter, mentioned Atlassian Corporation Plc (NASDAQ: TEAM) and discussed its stance on the firm. Atlassian Corporation Plc is a Sydney, Australia-based software company with an $88.3 billion market capitalization. TEAM delivered a 50.83% return since the beginning of the year, while its 12-month returns are up by 61.70%. The stock closed at $349.50 per share on December 03, 2021.
Here is what Artisan Global Discovery Fund has to say about Atlassian Corporation Plc in its Q3 2021 investor letter:
“Among our top contributors were Atlassian. Atlassian has been a meaningful positive contributor to our performance since we began our investment campaign in 2018. The company is playing offense on many fronts, and this has resulted in strong financial results this year. It added new customers at 3X its pre-pandemic pace in Q2, not only due to demand for digital collaboration tools, but also because its free product tier (added ~18 months ago) has started to bear fruit. This decision has enabled Atlassian to rapidly add new customers and realize better than expected conversions to paid subscriptions.
Meanwhile, cloud subscription revenue grew 50% in Q2, and the company’s migration of existing customers to this platform—which began in mid-2020—is pacing ahead of expectations. This transition is a win-win for Atlassian and its customers. Migrating from on-premise servers to the cloud not only reduces customers’ total cost of ownership longer term—physical hardware, maintenance, installation, support, administrative costs, etc.—and provides realtime product enhancements, but it also enables Atlassian to convert these customers to a more predictable recurring revenue stream, enhances revenue per user, and enables broader customer adoption and faster innovation cycles. The market has rewarded the company for these recent successes, and with shares approaching our estimate of private market value (PMV), we trimmed our position size (though it remains a core CropSM holding).”
Photo by Danial Igdery on Unsplash
Based on our calculations, Atlassian Corporation Plc (NASDAQ: TEAM) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. TEAM was in 60 hedge fund portfolios at the end of the third quarter of 2021, compared to 64 funds in the previous quarter. Atlassian Corporation Plc (NASDAQ: TEAM) delivered a 9.90% return in the past 3 months.
Disclosure: None. This article is originally published at Insider Monkey.
