Investment Process

The investment team seeks to invest in cash-producing businesses in strong financial condition that are selling at undemanding valuations.

Attractive Valuation

  • Distinct discount to intrinsic value
  • Low expectations
  • Favorable risk/reward

Sound Financial Condition

  • Focus on financial flexibility and liquidity
  • Seek to protect capital in difficult environments
  • Allows management to pursue value-enhancing initiatives

Attractive Business Economics

  • Focus on free cash flow and return on capital capabilities
  • Ability to grow underlying business value
  • Avoid “value traps”

In-depth Investment Process



Other Funds Managed

Investment Results (%)

As of 31 August 2023 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Advisor Class: APDQX 0.35 9.96 8.87 13.00 5.48 6.81 9.49
Russell Midcap® Value Index 0.66 5.93 5.65 12.07 6.12 8.93 9.34
Russell Midcap® Index 0.36 9.40 8.38 9.25 7.35 10.04 9.46
As of 30 June 2023 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Advisor Class: APDQX 4.44 9.57 12.36 15.97 6.11 7.13 9.54
Russell Midcap® Value Index 3.86 5.23 10.50 15.04 6.84 9.03 9.38
Russell Midcap® Index 4.76 9.01 14.92 12.50 8.46 10.32 9.52

Calendar Year Returns (%)

2018 2019 2020 2021 2022
Advisor Class: APDQX -13.43 23.71 5.57 26.57 -13.07
Russell Midcap® Value Index -12.29 27.06 4.96 28.34 -12.03
Russell Midcap® Index -9.06 30.54 17.10 22.58 -17.32
Returns for periods less than one year are not annualized. Class inception: Investor (28 March 2001); Advisor (1 April 2015). For the period prior to inception, Advisor Class performance is the Investor Class’s return for that period (“Linked Performance”). Linked Performance has not been restated to reflect expenses of the Advisor Class and the share class’s returns during that period would be different if such expenses were reflected. 

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. 

Expense Ratio

  Gross Net
Semi-Annual Report 31 March 2023 1.07%
Prospectus 30 September 2022 1.05%

Expense Ratio Disclosure

See prospectus for further details. Semi-Annual Report Figure(s): Unaudited, annualized for the six-month period. 

Top 10 Holdings
(% of total portfolio as of 31 August 2023)
First Citizens BancShares Inc (Financials) 4.5
Analog Devices Inc (Information Technology) 3.8
Arch Capital Group Ltd (Financials) 3.2
U-Haul Holding Co (Industrials) 3.1
Vontier Corp (Information Technology) 3.0
Marriott International Inc (Consumer Discretionary) 3.0
Globe Life Inc (Financials) 2.9
NOV Inc (Energy) 2.8
DENTSPLY SIRONA Inc (Health Care) 2.6
Cable One Inc (Communication Services) 2.5
Total 31.5%
View Full Holdings Historical Holdings
Portfolio Statistics
(as of 31 August 2023)
Median Market Cap (Billions) $11.6
Weighted Avg. Market Cap (Billions) $20.2
Weighted Harmonic Avg. P/E (FY1) 13.2X
Weighted Harmonic Avg. P/E (FY2) 12.0X
Median Price/Book Value 2.1X
Median ROE 14.1%
Median Fixed Charge Coverage Ratio 6.2X
Active Share 94.2%
Annual Turnover 15.2%
Number of Securities 49
Cash (% of total portfolio) 0.8%
Market Cap Distribution
(% of portfolio securities as of 31 August 2023)

$ in billions
31.6+ 20.4
22.2–31.6 4.5
14.0–22.2 24.4
8.2–14.0 23.8
0–8.2 26.8
TOTAL 100.0%
Sector Diversification
(% of portfolio securities as of 31 August 2023)
Communication Services 12.2
Consumer Discretionary 14.0
Consumer Staples 6.5
Energy 2.9
Financials 23.1
Health Care 10.5
Industrials 12.8
Information Technology 10.5
Real Estate 5.3
Utilities 2.2
Total 100.0%
The investment team leverages high degrees of experience and knowledge within a disciplined investment process. Learn more about the Team.
  • Daniel L. Kane, CFA
  • Portfolio Manager
  • 25Years Investment
  • Thomas A. Reynolds IV
  • Portfolio Manager
  • 24Years Investment
  • Craig Inman, CFA
  • Portfolio Manager
  • 24Years Investment
  • Value Income Series: An Equity Income Focus
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  • Value Income Series: The Genesis of Value Income
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  • Value Income Series: Flexibility to Invest in Different Parts of The Capital Structure
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  • Value Income Series: A Non-Formulaic Approach to Dividend Investing
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  • Value Income Series: Assessing Relative Value across The Capital Structure
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  • Value Income Series: Our Criteria for Position Sizing
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  • Video Update—Jim Kieffer, U.S. Value Team
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Current and future portfolio holdings are subject to risk. The value of portfolio securities selected by the investment team may rise or fall in response to company, market, economic, political, regulatory or other news, at times greater than the market or benchmark index. A portfolio’s environmental, social and governance (“ESG”) considerations may limit the investment opportunities available and, as a result, the portfolio may forgo certain investment opportunities and underperform portfolios that do not consider ESG factors. 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. 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/Russell/GICS. Sector exposure percentages reflect sector designations as currently classified by GICS. Annual turnover is reported as of the Fund’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. 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 (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. Price-to-Book Ratio (P/B Ratio) is a valuation measure used to compare a stock's market value to its book value. Return on Equity (ROE) is a profitability ratio that measures the amount of net income returned as a percentage of shareholders equity. 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. Free Cash Flow is a measure of financial performance calculated as operating cash flow minus capital expenditures. Return on Capital (ROC) is a measure of how effectively a company uses the money (borrowed or owned) invested in its operations. 

Russell Midcap® Index measures the performance of roughly 800 US mid-cap companies. Russell Midcap® Value Index measures the performance of US mid-cap companies with lower 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.