Management & Investment Process

Management

The investment team leverages high degrees of experience and knowledge within a disciplined investment process. Learn more about the Team.
  • Jason L. White, CFA
  • Portfolio Manager
  • 18Years Investment
    Experience
  • James D. Hamel, CFA
  • Portfolio Manager
  • 22Years Investment
    Experience
  • Matthew H. Kamm, CFA
  • Portfolio Manager
  • 19Years Investment
    Experience
  • Craigh A. Cepukenas, CFA
  • Portfolio Manager
  • 30Years Investment
    Experience

Investment Process

The investment team seeks to invest in companies with franchise characteristics that are benefiting from an accelerating profit cycle and are trading at a discount to private market value.

Security Selection

  • Identify companies with franchise characteristics and defensible competitive positions
  • Invest in emerging profit cycles
  • Purchase stocks at a discount to private market value

Capital Allocation—Garden, Crop, Harvest® Investing

  • Build position size according to conviction
  • GardenSM — Smaller position sizes in companies that are early on in the profit cycle
  • CropSM — Larger position sizes in companies where profit cycle is being realized
  • HarvestSM — Reduced or sold positions as stock approaches full valuation or profit cycle begins to decelerate

Broad Knowledge

  • Invest opportunistically across entire global economy
  • Find growth wherever growth occurs

In-depth Investment Process

 

    Investment Results (%)

    As of 30 November 2018 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
    Composite — Gross -9.25 6.15 7.05 9.89
    Composite — Net -9.40 5.20 6.02 8.83
    MSCI All Country World Index -6.14 -2.55 -0.98 4.00
    As of 30 September 2018 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
    Composite — Gross 5.88 16.96 22.32 21.96
    Composite — Net 5.62 16.12 21.15 20.80
    MSCI All Country World Index 4.28 3.83 9.77 10.94

    Annual Returns (%)

    12 Months Ended 30 September 2014 2015 2016 2017 2018
    Composite — Gross 22.32
    Returns for periods less than one year are not annualized. 

    Past performance does not guarantee and is not a reliable indicator of future results. Current performance may be lower or higher than the performance shown. Composite performance has been presented in both gross and net of investment management fees. The strategy’s investments in initial public offerings (IPOs) made a material contribution to performance. IPO investments may contribute significantly to a small portfolio’s return, an effect that will generally decrease as assets grow. IPO investments may be unavailable in the future. 

    Investment Risk: Investments will rise and fall with market fluctuations and investor capital is at risk. Investors investing in funds denominated in non-local currency should be aware of the risk of currency exchange fluctuations that may cause a loss of principal. These risks, among others, are further described in the Important Disclosures section which should be read in conjunction with this material. 
    Top 10 Holdings
    (% of total portfolio as of 30 November 2018)
    Teledyne Technologies Inc (United States) 5.5
    Global Payments Inc (United States) 4.8
    Guidewire Software Inc (United States) 4.0
    Tableau Software Inc (United States) 3.6
    Boston Scientific Corp (United States) 3.6
    Webster Financial Corp (United States) 3.3
    Techtronic Industries Co Ltd (Hong Kong) 3.2
    IHS Markit Ltd (United States) 3.1
    First Republic Bank (United States) 2.9
    IMCD NV (Netherlands) 2.7
    Total 36.7%
    Portfolio Statistics
    (as of 30 November 2018)
    Median Market Cap (Billions) $7.9
    Weighted Avg. Market Cap (Billions) $16.7
    Weighted Harmonic Avg. P/E (FY1) 23.7X
    Weighted Harmonic Avg. P/E (FY2) 21.1X
    Weighted Avg. LT EPS Growth Rate (3-5 Yr) 22.4%
    Weighted Avg. LT Debt/Capital 27.4%
    Active Share 98.8%
    Number of Securities 54
    Number of Countries 13
    Cash (% of total portfolio) 5.4%
    Region Allocation
    (% of total portfolio equities as of 30 November 2018)
    Americas 65.0
    Europe 22.4
    Pacific Basin 7.2
    Emerging Markets 5.4
    Total 100.0%
    Top 10 Countries
    (% of total portfolio equities as of 30 November 2018)
    United States 62.6
    Netherlands 6.2
    United Kingdom 6.0
    Germany 3.6
    Hong Kong 3.4
    France 3.2
    India 2.9
    Brazil 2.6
    Canada 2.4
    Japan 1.9
    Sector Diversification
    (% of total portfolio equities as of 30 November 2018)
    Communication Services 7.6
    Consumer Discretionary 11.5
    Consumer Staples 2.8
    Energy 1.5
    Financials 14.5
    Health Care 13.7
    Industrials 20.6
    Information Technology 28.0
    Materials
    Real Estate
    Utilities
    Total 100.0%

    Portfolio Manager Viewpoints

    • 1-Year Anniversary—Artisan Global Discovery Strategy
    • View PDF

    Artisan Partners Insights

    • Where We Are Finding Growth—Health Care Innovation
    • View PDF
    • Where We Are Finding Growth—Next-Generation Data Analytics
    • View PDF
    International investments involve special risks, including currency fluctuation, lower liquidity, different accounting methods and economic and political systems, and higher transaction costs. These risks typically are greater in emerging markets.  Securities of small- and medium-sized companies tend to have a shorter history of operations, be more volatile and less liquid and may have underperformed securities of large companies during some periods.  Growth securities may underperform other asset types during a given period.  These risks, among others, are further described in Artisan Partners Form ADV, which is available upon request. 

    Unless otherwise indicated, strategy characteristics relate to that of a representative account managed within the investment composite. It is intended to provide a general illustration of the investment strategy and considerations used by Artisan Partners in managing that strategy. Individual accounts managed to the strategy may differ, at times significantly, from the reference data shown due to varying account restrictions, fees and expenses, and longevity periods, among others. Where applicable, this information is supplemental to, and not to be construed with, a current or prospective client's investment account information.

    Performance Source: Artisan Partners/MSCI. Net-of-fees composite returns were calculated using the highest model investment advisory fees applicable to portfolios within the composite. Fees may be higher for certain pooled vehicles and the composite may include accounts with performance-based fees. All performance results are net of commissions and transaction costs, and have been presented gross and net of investment advisory fees. Dividend income is recorded net of foreign withholding taxes on ex-dividend date or as soon after the ex-dividend date as the information becomes available to Artisan Partners. Interest income is recorded on the accrual basis. Performance results for the Index include reinvested dividends and are presented net of foreign withholding taxes but, unlike the portfolio's returns, do not reflect the payment of sales commissions or other expenses incurred in the purchase or sale of the securities included in the indices. 

    Data & Statistics Sources: Artisan Partners/FactSet/MSCI/GICS. Sector exposure percentages reflect sector designations as currently classified by GICS. Artisan Partners may exclude outliers when calculating portfolio statistics. If information is unavailable for a particular security Artisan may use data from a related security to calculate portfolio statistics. Securities of the same issuer are aggregated to determine a holding’s weight in the portfolio. Cash weighting includes cash and cash equivalents. Totals may not sum due to rounding. 

    Median is the data's midpoint value. Market Cap is the aggregate value of all of a company's outstanding equity securities. Weighted Average is the average of values weighted to the data set's composition. Weighted Harmonic Average is a calculation of weighted average commonly used for rates or ratios. Price-to-Earnings Ratio (P/E Ratio) measures how expensive a stock is. Earnings figures used for FY1 and FY2 are estimates for the current and next unreported fiscal years. LT EPS Growth Rate is the average of the 3-5 year forecasted EPS growth rate of a company. LT Debt/Capital is the long-term debt to total capital relationship of each company within the portfolio. Active Share is defined as the percentage of a portfolio that differs from its benchmark index. Active Share can range from 0% for an index fund that perfectly mirrors its benchmark to 100% for a portfolio with no overlap with an index. 

    MSCI All Country World Index measures the performance of developed and emerging markets. The index(es) are unmanaged; include net reinvested dividends; do not reflect fees or expenses; and are not available for direct investment. 

    MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used to create indices or financial products. This report is not approved or produced by MSCI. 

    The Global Industry Classification Standard (GICS®) is the exclusive intellectual property of MSCI Inc. (MSCI) and Standard & Poor’s Financial Services, LLC (S&P). Neither MSCI, S&P, their affiliates, nor any of their third party providers (“GICS Parties”) makes any representations or warranties, express or implied, with respect to GICS or the results to be obtained by the use thereof, and expressly disclaim all warranties, including warranties of accuracy, completeness, merchantability and fitness for a particular purpose. The GICS Parties shall not have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of such damages.