Peloton (PTON), A Notable Contributor in Artisan Mid Cap’s Q4 Results

Artisan Partners Limited Partnership, a high value-added investment management firm, published its ‘Artisan Mid Cap Fund’ fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 16.82% was recorded by its Investor Class: ARTMX, 16.87% by its Advisor Class: APDMX, and 16.89% by its Institutional Class: APHMX, in the fourth quarter of 2020, all below its Russell Midcap Growth Benchmark that delivered a 19.02% return and its Russel Midcap Index that was up by 19.91% in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Artisan Mid Cap Fund, in their Q4 2020 investor letter, mentioned Peloton Interactive, Inc. (NASDAQ: PTON) and emphasized their views on the company. Peloton Interactive, Inc. is a New York-based exercise equipment company that currently has a $30.7 billion market capitalization. Since the beginning of the year, PTON delivered a -30.94% return, but its 12-month gains are still up by 306.28%. As of March 16, 2021, the stock closed at $107.96 per share.

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

“Among our top individual contributors in Q4 was Peloton Interactive. Peloton Interactive’s growth has accelerated during the pandemic as consumers replace in-person gym workouts with the company’s connected bikes and online classes. This has increased the Peloton’s brand awareness, decreased its need for advertising spend and quickly proved out its high-margin, recurring revenue business model. While some of this demand may soften as consumers face more workout options post-pandemic, we believe Peloton is very early in its profit cycle. The pandemic has introduced more people to the convenience of at-home connected fitness, Peloton’s scale and network advantages have been strengthened, and, with the launch of a new lower-priced treadmill in 2021, the company will be poised to address a much larger category than stationary bikes.”

7 Best Nationwide Gyms for Travelers


Our calculations show that Peloton Interactive, Inc. (NASDAQ: PTON) 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, Peloton Interactive, Inc. was in 63 hedge fund portfolios, compared to 58 funds in the third quarter. PTON delivered a -21.81% 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.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

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