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


    Results (%)

    As of 30 November 2018 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
    Investor Class: ARTMX -9.46 6.53 6.42 7.46 7.24 16.36 12.91
    Russell Midcap® Growth Index -7.61 4.75 5.32 11.24 10.17 16.64 8.52
    Russell Midcap® Index -6.05 0.95 1.89 9.84 9.14 15.71 9.58
    As of 30 September 2018 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
    Investor Class: ARTMX 9.31 17.66 21.12 13.67 9.95 13.22 13.55
    Russell Midcap® Growth Index 7.57 13.38 21.10 16.65 13.00 13.46 8.99
    Russell Midcap® Index 5.00 7.46 13.98 14.52 11.65 12.31 9.98

    Calendar Year Returns (%)

    2013 2014 2015 2016 2017
    Investor Class: ARTMX 37.39 5.68 2.17 -0.89 20.48
    Russell Midcap® Growth Index 35.74 11.90 -0.20 7.33 25.27
    Russell Midcap® Index 34.76 13.22 -2.44 13.80 18.52
    Returns for periods less than one year are not annualized. 

    Past performance does not guarantee and is not a reliable indicator of future results. Investment returns and principal values will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown. 


    Morningstar Overall RatingTM
    As of 30 November 2018
    Morningstar Analyst RatingTM
    As of 30 November 2018

    Morningstar Rating and Analyst Rating Disclosure

    Expense Ratio

    Annual Report 30 September 2018 1.18%
    Prospectus 30 September 2017 1.18%

    Expense Ratio Disclosure

    See prospectus for further details. 

    Top 10 Holdings
    (% of total portfolio as of 30 November 2018)
    Atlassian Corp PLC (Information Technology) 4.8
    Global Payments Inc (Information Technology) 4.7
    IHS Markit Ltd (Industrials) 4.0
    The Progressive Corp (Financials) 3.8
    Tableau Software Inc (Information Technology) 3.6
    Boston Scientific Corp (Health Care) 3.4
    Veeva Systems Inc (Health Care) 3.2
    Worldpay Inc (Information Technology) 2.4
    Roper Technologies Inc (Industrials) 2.3
    Guidewire Software Inc (Information Technology) 2.3
    Total 34.6%
    View Full Holdings Historical Holdings
    Portfolio Statistics
    (as of 30 November 2018)
    Median Market Cap (Billions) $12.0
    Weighted Avg. Market Cap (Billions) $18.0
    Weighted Harmonic Avg. P/E (FY1) 24.7X
    Weighted Harmonic Avg. P/E (FY2) 22.5X
    Weighted Avg. LT EPS Growth Rate (3-5 Yr) 24.1%
    Weighted Avg. LT Debt/Capital 32.3%
    Active Share 85.8%
    Portfolio Turnover Rate 42.6%
    Number of Securities 63
    Cash (% of total portfolio) 3.0%
    Market Cap Distribution
    (% of total portfolio equities as of 30 November 2018)

    $ in billions
    25.0+ 20.1
    17.0–25.0 31.3
    12.0–17.0 12.2
    7.9–12.0 18.5
    0–7.9 18.0
    TOTAL 100.0%
    Sector Diversification
    (% of total portfolio equities as of 30 November 2018)
    Communication Services 4.5
    Consumer Discretionary 11.2
    Consumer Staples 0.9
    Energy 1.8
    Financials 9.4
    Health Care 19.9
    Industrials 17.5
    Information Technology 33.6
    Materials 1.3
    Real Estate
    Total 100.0%
    The investment team leverages high degrees of experience and knowledge within a disciplined investment process. Learn more about the Team.
    • Matthew H. Kamm, CFA
    • Portfolio Manager
    • 19Years Investment
    • James D. Hamel, CFA
    • Portfolio Manager
    • 22Years Investment
    • Craigh A. Cepukenas, CFA
    • Portfolio Manager
    • 30Years Investment
    • Jason L. White, CFA
    • Portfolio Manager
    • 19Years Investment

    Portfolio Manager Viewpoints

    • 1-Year Anniversary—Artisan Global Discovery Fund
    • View PDF
    • A Scientific Approach to Identifying Profit Cycles
    • View PDF

    Artisan Partners Insights

    • Finding Growth in a Maturing Bull Market
    • View PDF
    • Where We Are Finding Growth—Health Care Innovation
    • View PDF
    • Where We Are Finding Growth—Financials Are Investible Again
    • View PDF
    • Where We Are Finding Growth—Internal Change Catalysts
    • 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 are discussed in the prospectus. Please read it carefully before you invest or send money. 

    Performance Source: Artisan Partners/Russell. Data & Statistics Sources: Artisan Partners/FactSet/Russell/GICS. Sector exposure percentages reflect sector designations as currently classified by GICS. Portfolio turnover is reported as of the Fund’s fiscal year end. 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. For the purpose of determining the Fund's holdings, securities of the same issuer are aggregated to determine the weight in the Fund. 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. Portfolio Turnover is a measure of the trading activity in an investment portfolio—how often securities are bought and sold by a portfolio. 

    Russell Midcap® Index measures the performance of roughly 800 US mid-cap companies. Russell Midcap® Growth Index measures the performance of US mid-cap companies with higher price/book ratios and forecasted growth values. The index(es) are unmanaged; include net reinvested dividends; do not reflect fees or expenses; and are not available for direct investment. 

    Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication. 

    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.

    The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. 

    The Morningstar Analyst Rating is not a credit or risk rating. It is a subjective evaluation performed by the mutual fund analysts of Morningstar, Inc. Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price. Morningstar's analysts use this five pillar evaluation to identify funds they believe are more likely to outperform over the long term on a risk-adjusted basis. Analysts consider quantitative and qualitative factors in their research, and the weighting of each pillar may vary. The Analyst Rating ultimately reflects the analyst's overall assessment and is overseen by Morningstar's Analyst Rating Committee. The approach serves not as a formula but as a framework to ensure consistency across Morningstar's global coverage universe.

    The Analyst Rating scale ranges from Gold to Negative, with Gold being the highest rating and Negative being the lowest rating. A fund with a "Gold" rating distinguishes itself across the five pillars and has garnered the analysts' highest level of conviction. A fund with a 'Silver' rating has notable advantages across several, but perhaps not all, of the five pillars-strengths that give the analysts a high level of conviction. A "Bronze"-rated fund has advantages that outweigh the disadvantages across the five pillars, with sufficient level of analyst conviction to warrant a positive rating. A fund with a 'Neutral' rating isn't seriously flawed across the five pillars, nor does it distinguish itself very positively. A "Negative" rated fund is flawed in at least one if not more pillars and is considered an inferior offering to its peers. Analyst Ratings are reevaluated at least every 14 months. View detailed information about Morningstar’s Analyst Rating, including its methodology .