Artisan Partners Global Discovery Fund’s Top Detractor: SVB Financial Group (SIVBQ)
Artisan Partners, an investment management company, released its “Artisan Global Discovery Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, its Investor Class fund APFDX returned 11.52%, Advisor Class fund APDDX posted a return of 11.56%, and Institutional Class fund APHDX returned 11.64%, compared to a return of 7.31% for the MSCI All Country World Index. The fund’s performance in the quarter was attributed to security selection, significantly in the information technology and healthcare sectors. Several software, semiconductor, and biomanufacturing holdings rebounded in Q1 after a difficult Q4. Moreover, the portfolio also benefited from a lack of exposure to the energy sector, the index’s worst-performing sector for the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Artisan Global Discovery Fund highlighted stocks like SVB Financial Group (OTC:SIVBQ) in the first quarter 2023 investor letter. Headquartered in Santa Clara, California, SVB Financial Group (OTC:SIVBQ) is a diversified financial services company. On June 29, 2023, SVB Financial Group (OTC:SIVBQ) stock closed at $0.5800 per share. One-month return of SVB Financial Group (OTC:SIVBQ) was 58.90%, and its shares lost 99.86% of their value over the last 52 weeks. SVB Financial Group (OTC:SIVBQ) has a market capitalization of $34.337 million.
Artisan Global Discovery Fund made the following comment about SVB Financial Group (OTC:SIVBQ) in its first quarter 2023 investor letter:
"Among our top detractors were SVB Financial Group (OTC:SIVBQ), Hapvida Participacoes e Investimentos and Nasdaq. A discussion of this quarter’s detractors must include Silicon Valley Bank, the largest bank failure since Washington Mutual in 2008. Our decision to hold the company at a GardenSM position meant its impact on performance was manageable. However, this was a disappointing and humbling experience for our team. Our thesis for SVB Financial Group had been that it was at the bottom of a profit cycle as venture capital funding activity was at a low and net interest margins had been pressured by the unprecedent rise in rates. But given that they had a leading franchise position in the innovation economy, relatively low credit risk (only 3% of loans are to early stage companies), and what we believed was a discounted valuation, we thought it made sense to position it in the GardenSM for an eventual acceleration in its profit cycle."
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SVB Financial Group (OTC:SIVBQ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 4 hedge fund portfolios held SVB Financial Group (OTC:SIVBQ) at the end of first quarter 2023 which was 45 in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2023 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.
