Portfolio Managers Craig Inman and Dan Kane discuss the team’s three criteria required to make an investment.

This material represents the views and opinions of the portfolio management team of Artisan Value, Mid Cap Value and Value Income Funds which are subject to change without notice. This material is provided for informational purposes without regard to your particular investment needs. This material should not be construed as investment or tax advice on which you may rely for your investment decisions. Investors should consult their financial and tax adviser before making investments in order to determine the appropriateness of any investment product discussed herein.

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. Value securities may underperform other asset types during a given period.

References to “better, safer, cheaper” are based on views of a security’s Margin of Safety. Margin of safety, a concept developed by Benjamin Graham, is the difference between the market price and the estimated intrinsic value of a business. A large margin of safety may help guard against permanent capital loss and improve the probability of capital appreciation. Margin of safety does not prevent market loss—all investments contain risk and may lose value.

Price-to-Earnings (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. Price-to-Book Ratio (P/B Ratio) measures a company's stock price in relation to its book value (the total amount a company would be worth if it liquidated its assets and paid back all its liabilities). Price-to-Sales (P/S) Ratio is a valuation ratio that compares a company’s stock price to its revenues. EBITDA (earnings before interest, taxes, depreciation and amortization) is a widely used measure of a company's financial health and ability to generate cash. Enterprise value (EV) measures a company's total value, often used as a more comprehensive alternative to market capitalization.