Artisan Partners Asset Management Inc (APAM)APAM

Artisan Partners Asset Management Inc: A Comprehensive Overview

Company Profile:

Detailed history and background:

• Founded in 1994, Artisan Partners Asset Management Inc. (ART) is an investment management firm headquartered in Milwaukee, Wisconsin.
• The firm has offices in the US, London, and Dubai.
• ART offers a range of investment strategies across public equities, fixed income, and alternative investments.
• ART is owned by Affiliated Managers Group (AMG), a global asset management company.

Core Business Areas:

• Equity Management: Focuses on growth, value, and small-cap strategies across the Americas, Europe, and Asia.
• Fixed Income Management: Includes global core, high-yield, and emerging markets bonds.
• Alternative Strategies: Offers real estate, private credit, and opportunistic strategies.

Leadership team and corporate structure:

• CEO: Eric Colson
• President and COO: Michael K. Cheah
• Chairman of Artisan Partners' Board of Directors: Robert L. Reynolds
• Independent Board Members: William F. Raynor, Nancy C. Andrews, and John H. Bermingham
• ART operates as a subsidiary of AMG, but has its own board of directors and management team.

Top Products and Market Share:

Top Products:

• Artisan Mid Cap Fund: Invests in mid-cap companies with strong growth potential.
• Artisan International Value Fund: Invests in undervalued companies in developed markets outside of the US.
• Artisan Global Opportunities Fund: Invests in companies across the globe with the potential for significant long-term growth.
• Artisan Small Cap Fund: Invests in small-cap companies with high growth potential.
• Artisan International Equity Fund: Invests in undervalued companies in developed markets outside of the US.

Market Share:

• ART has a relatively small market share in the overall asset management industry.
• As of June 30, 2023, the firm managed approximately $62.5 billion in assets across all strategies.
• Compared to its competitors in the mid-cap equity space, ART holds a 0.5% market share.
• The firm's market share varies depending on the specific product and market segment.

Product performance and market reception:

• ART's funds have consistently outperformed their benchmarks over the long term.
• Morningstar awards several of the firm's funds with high star ratings.
• ART receives positive reviews from investors for its strong performance and experienced investment team.

Total Addressable Market:

Market Size: The global asset management industry is estimated to be worth over $100 trillion. This market includes institutional and retail investors.

Growth Potential: The asset management industry is expected to grow steadily in the coming years, driven by factors such as increasing wealth, aging populations, and globalization.

Financial Performance:

Revenue and Net Income: ART's revenue and net income have grown steadily in recent years. In 2022, the firm reported revenue of $621.5 million and net income of $223.2 million.

Profit Margins: ART's profit margins are healthy and have remained consistent. The firm's operating margin was 27% in 2022.

Earnings per Share (EPS): ART's EPS has also grown steadily in recent years. The firm's EPS was $3.28 in 2022.

Financial Health: ART is in good financial health with strong cash flow and a healthy balance sheet.

Dividends and Shareholder Returns:

Dividend History: ART has a history of paying dividends. The firm's current annual dividend yield is 2.15%.

Shareholder Returns: ART has generated strong total shareholder returns over the past one, five, and ten years. The firm's total shareholder return was 20.4% for the one year period ended June 30, 2023.

Growth Trajectory:

Historical Growth: ART has shown consistent growth over the past five to ten years, both in terms of assets under management and revenue.

Future Growth Projections: ART is well-positioned for future growth. The firm's strong investment performance, experienced team, and diverse product offerings are expected to drive continued growth.

Recent Product Launches and Strategic Initiatives: ART is constantly launching new products and initiatives to meet the changing needs of investors. The firm recently launched a new private credit fund and has also expanded its offerings in alternative investments.

Market Dynamics:

Industry Trends: The asset management industry is undergoing a number of changes, including the rise of passive investing, the increasing use of technology, and the growing demand for sustainable investing.

Artisan's Position: ART is well-positioned to adapt to these changes. The firm is actively incorporating technology into its investment process and has a strong commitment to sustainable investing.

Competitors:

Key Competitors:

• BlackRock (BLK)
• Vanguard Group (V)
• Fidelity Investments (FNF)
• State Street Global Advisors (STT)
• T. Rowe Price Group (TROW)
• JPMorgan Asset Management (JPM)

Market Share:

• BlackRock has the largest market share in the asset management industry, followed by Vanguard Group and Fidelity Investments.
• ART's market share is relatively small compared to these larger firms.

Competitive Advantages and Disadvantages:

• Competitive Advantages: Strong investment performance, experienced team, diverse product offerings, and commitment to sustainable investing.
• Competitive Disadvantages: Smaller size and limited brand recognition compared to its larger competitors.

Potential Challenges and Opportunities:

Key Challenges:

• Competition from larger asset managers
• Market volatility
• Regulatory changes

Potential Opportunities:

• Growing demand for alternative investments
• Expansion into new markets
• Development of new products and services

Recent Acquisitions:

ART has not made any acquisitions in the last three years.

AI-Based Fundamental Rating:

ART receives an AI-based fundamental rating of 8 out of 10. This rating is based on the firm's strong financial performance, experienced investment team, and diverse product offerings.

Justification:

• ART has a strong track record of financial performance, with consistent revenue and earnings growth.
• The firm has a deep bench of experienced investment professionals with proven track records.
• ART offers a wide range of products and services across various asset classes, catering to the diverse needs of investors.
• The firm is committed to sustainable investing and incorporates ESG factors into its investment process.

Sources and Disclaimers:

• Sources: 2022 Artisan Partners Asset Management Inc Annual Report, Morningstar, SEC filings
• Disclaimer: This report is for informational purposes only and should not be considered investment advice. Investors should consult with a professional financial advisor before making any investment decisions.
• AI Disclaimer: The AI-based fundamental rating and analysis is generated by an algorithmic system and should not be solely relied upon for investment decisions.