Artisan Partners, an investment management company, released its “Artisan Mid Cap Value Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In Q3, US stocks recovered from brief periods of volatility to hit new all-time highs. The portfolio returned strong absolute returns in the third quarter but lagged the benchmark. In the quarter, its Investor Class fund ARTQX returned 8.58%, Advisor Class fund APDQX posted a return of 8.63%, and Institutional Class fund APHQX returned 8.61%, compared to a 10.08% return for the Russell Midcap Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Artisan Mid Cap Value Fund highlighted stocks like Gentex Corporation (NASDAQ:GNTX), in the third quarter 2024 investor letter. Gentex Corporation (NASDAQ:GNTX) develops and manufactures digital vision, connected cars, dimmable glass, and fire protection products. The one-month return of Gentex Corporation (NASDAQ:GNTX) was 0.72%, and its shares lost 2.48% of their value over the last 52 weeks. On November 13, 2024, Gentex Corporation (NASDAQ:GNTX) stock closed at $30.38 per share with a market capitalization of $6.85 billion.
Artisan Mid Cap Value Fund stated the following regarding Gentex Corporation (NASDAQ:GNTX) in its Q3 2024 investor letter:
“In addition to our lack of homebuilders, our returns in the consumer discretionary sector were held back by our investment in Gentex Corporation (NASDAQ:GNTX), a manufacturer of automatic-dimming mirrors and related driver-assistance systems for the global auto industry. Gentex’s quarterly results came in lighter than expected, with sales down 1.8% year over year, slightly better than vehicle production of -3.0% across the company’s markets. Management noted that several larger customers unexpectedly reduced orders in June; however, order activity returned to trend in July. The hiccup in sales seems driven by general weakness in production volumes as OEMs (original equipment manufacturers) manage inventory levels. While cyclical end markets can cause choppy operating results, the company has compounded capital well since our initial purchase in 2015. Gentex’s technology know-how and proven ability to develop new higher value products provide it with pricing power and a higher margin structure than peers, leading to high-teens returns on capital. Unlike most automotive parts suppliers, Gentex generates strong free cash, maintains a significant net cash position and has a dedicated return of capital program.”