TBC - Artisan Value Fund Q1 2024 Commentary
2024-04-24 10:15:00 ET
Summary
- Artisan Partners is an independent investment management firm focused on providing high value-added, active investment strategies to sophisticated clients globally.
- The portfolio performed roughly in line with the Russell 1000® Value Index.
- We believe it would be a mistake to focus solely on the S&P 500® Index, which has become increasingly concentrated among a few mega-cap stocks, and in our view, no longer represents the diverse opportunity set that exists within our value investment universe.
Investing Environment
US equity markets reached new all-time highs in Q1 supported by a resilient US economy, a general trend of disinflation and an acceleration in corporate profits growth. Given mostly benign economic data offering little indication that a recession is near, interest rate markets pared back the number of expected Federal Reserve rate cuts in 2024. The Russell 1000® Value Index rose 8.99%, continuing the strong rally that began in late October of last year. Broad-based strength across sectors and leadership from cyclicals—industrials, energy and financials—may suggest investors’ focus has shifted toward drivers of revenue growth rather than a potential decrease in the cost of capital, which has been a major driver of stocks, especially high-growth technology issues. The three previously noted cyclical sectors led the way in Q1 with double-digit gains, while the real estate sector was weakest, finishing slightly down. All other sectors returned between 5%–8%....
Artisan Value Fund Q1 2024 Commentary