Management & Investment Process


The investment team leverages high degrees of experience and knowledge within a disciplined investment process. Learn more about the Team.
  • Rezo Kanovich
  • Portfolio Manager
  • 24Years Investment

Investment Process

The investment team seeks high-quality businesses exposed to structural growth themes.

Investing with Tailwinds

  • Identify structural themes at the intersection of growth and change
  • Invest in companies poised to be beneficiaries of those trends

High-Quality Businesses

  • Differentiated and defensible business model
  • Dynamic management team

A Contrarian Approach to Valuation

  • Market dislocations and mismatches between stock price and long-term business value create opportunity

Manage Unique Risks of International Small- and Mid-Cap Equities

  • Understand the direct and indirect security risk and the probability of permanent capital impairment

In-depth Investment Process


Investment Results (% USD)

As of 31 August 2023 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Composite — Gross -1.79 7.11 9.75 1.30 10.95
Composite — Net -1.96 6.40 8.66 0.29 9.83
MSCI All Country World ex USA SMID Index 1.62 9.22 10.70 3.91 6.26
MSCI All Country World ex USA Small Cap Index 2.15 9.14 10.01 4.91 7.13
As of 30 June 2023 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Composite — Gross 1.23 9.07 15.70 5.89 11.83
Composite — Net 0.97 8.53 14.56 4.83 10.71
MSCI All Country World ex USA SMID Index 1.76 7.48 11.15 6.94 6.12
MSCI All Country World ex USA Small Cap Index 2.05 6.84 10.93 8.15 6.90

Annual Returns (% USD)

12 Months Ended 30 June 2019 2020 2021 2022 2023
Composite — Gross 12.29 43.20 -28.35 15.70
Composite — Net 11.12 41.80 -29.08 14.56

Calendar Year Returns (% USD)

2018 2019 2020 2021 2022
Composite — Gross 38.37 35.36 5.17 -23.02
Composite — Net 36.96 33.99 4.13 -23.81
MSCI All Country World ex USA SMID Index 22.36 12.01 10.16 -19.49
MSCI All Country World ex USA Small Cap Index 22.42 14.24 12.93 -19.97
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. 

Investment Risk: Investments will rise and fall with market fluctuations and investor capital is at risk. Investors investing in investment vehicles 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 31 August 2023)
Nice Ltd (Israel) 4.0
ConvaTec Group PLC (United Kingdom) 2.7
Metso Oyj (Finland) 2.4
Alcon Inc (Switzerland) 2.3
AIXTRON SE (Germany) 2.0
Gerresheimer AG (Germany) 2.0
CyberArk Software Ltd (Israel) 1.9
Azbil Corp (Japan) 1.8
CAE Inc (Canada) 1.8
Fabrinet (United States) 1.8
Total 22.7%
Portfolio Statistics
(as of 31 August 2023)
Median Market Cap (Billions) $3.6
Weighted Avg. Market Cap (Billions) $7.2
Weighted Harmonic Avg. P/E (FY2) 18.8X
Weighted Avg. LT EPS Growth Rate (3-5 Yr) 16.6%
Median Return on Capital 6.8%
Weighted Avg. LT Debt/Capital 22.6%
Fixed Charge Coverage Ratio 7.7X
Active Share 96.2%
Annual Turnover 24.7%
Number of Securities 132
Number of Countries 21
Cash (% of total portfolio) 2.6%
Region Allocation
(% of portfolio securities as of 31 August 2023)
Region Allocation chart
Europe 48.9
Americas 23.0
Pacific Basin 12.8
Middle East 9.2
Emerging Markets 6.1
Total 100.0%
Top 10 Countries
(% of portfolio securities as of 31 August 2023)
United States 17.0
United Kingdom 15.9
Japan 12.8
Israel 9.2
Germany 7.3
Denmark 6.6
Switzerland 6.4
Canada 6.0
Sweden 2.9
India 2.8
Sector Diversification
(% of portfolio securities as of 31 August 2023)
Communication Services 0.8
Consumer Discretionary 3.9
Consumer Staples 7.8
Energy 1.9
Financials 4.7
Health Care 23.4
Industrials 28.1
Information Technology 25.8
Materials 2.8
Real Estate 0.7
Utilities 0.1
Total 100.0%
  • International Small Caps: A Strategic Asset Class
  • View PDF
  • Deconstructing Alpha Podcast feat. Rezo Kanovich
  • Listen Now
  • Software Enterprise: The Changing Ecosystem
  • View PDF
  • Punching Above Their Weight Class: High Value-Added Bottlenecks
  • View PDF
  • ESGandMe: In Our DNA—Investing With an Innate Consideration for ESG
  • View PDF
  • Identifying Long-Term Tailwinds in Health Care and Technology
  • Watch Now
  • Managing Unique Risks of International Small- and Mid-Cap Equities
  • Watch Now
  • Identifying Long-Term Opportunities in the International Small-Mid Universe
  • Watch Now
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 and less developed markets, including frontier 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. The costs associated with an investment will impact your return over time. 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/MSCI/GICS. Sector exposure percentages reflect sector designations as currently classified by GICS. Annual turnover is reported as of the strategy’s fiscal year end. Artisan Partners may exclude outlier data and certain securities which lack applicable attributes, such as private securities 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 (USD) 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. Return on Capital (ROC) is a measure of how effectively a company uses the money (borrowed or owned) invested in its operations. LT Debt/Capital is the long-term debt to total capital relationship of each company within the portfolio. Fixed Charge Coverage Ratio indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. 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. Annual Turnover is a measure of the trading activity in an investment portfolio—how often securities are bought and sold by a portfolio. 

MSCI EAFE Index measures the performance of developed markets, excluding the US and Canada. MSCI EAFE Small Cap Index measures the performance of small-cap companies in developed markets, excluding the US and Canada. 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.