Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, its Investor Class fund ARTSX returned 6.27%, Advisor Class fund APDSX posted a return of 6.31%, and Institutional Class fund APHSX returned 6.38%, compared to a return of 4.13% for the Russell 2000 Growth Index. Security selection, especially strong holdings in the healthcare sector, drove the fund’s outperformance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Artisan Small Cap Fund highlighted stocks like Q2 Holdings, Inc. (NYSE:QTWO) in the Q4 2022 investor letter. Headquartered in Austin, Texas, Q2 Holdings, Inc. (NYSE:QTWO) is a cloud-based digital solutions provider for financial institutions. On March 2, 2023, Q2 Holdings, Inc. (NYSE:QTWO) stock closed at $32.23 per share. One-month return of Q2 Holdings, Inc. (NYSE:QTWO) was -9.92%, and its shares lost 47.50% of their value over the last 52 weeks. Q2 Holdings, Inc. (NYSE:QTWO) has a market capitalization of $1.861 billion.
Artisan Small Cap Fund made the following comment about Q2 Holdings, Inc. (NYSE:QTWO) in its Q4 2022 investor letter:
“We ended our investment campaigns in Ingersoll Rand (discussed earlier), Q2 Holdings, Inc. (NYSE:QTWO) and Silvergate Capital during Q4. Q2 Holdings is a leading provider of secure, cloud-based virtual banking solutions. The company has a strong franchise and remains the provider of choice in digital banking. Unfortunately, they have not been able to outrun macro-related headwinds that are pressuring large transformational deals, showing up in transactional revenue and a lowering of expectations. While we believe some of these headwinds are temporary, macro headwinds, combined with our disappointment in the lack of leverage in the model as they have scaled revenues, dictated the harvest of our CropSM position and upgrade of the capital.”
Photo by Clay Banks on Unsplash
Q2 Holdings, Inc. (NYSE:QTWO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Q2 Holdings, Inc. (NYSE:QTWO) at the end of the fourth quarter which was 24 in the previous quarter.
We discussed Q2 Holdings, Inc. (NYSE:QTWO) in another article and shared the list of small cap SaaS stocks that hedge funds are piling into. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
