Here’s Why Vontier Corporation (VNT) Outperformed in 2023

Artisan Partners, an investment management company, released its “Artisan Mid Cap Value Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, its Investor Class fund ARTQX returned 11.21%, Advisor Class fund APDQX posted a return of 11.20%, and Institutional Class fund APHQX returned 11.17%, compared to a 12.11% return for the Russell Midcap Value Index. For the full year, ARTQX, APDQX, and APHQX returned 18.15%, 18.25%, and 18.35%, respectively, compared to 12.71% for the index. The portfolio did well in the market with double-digit gains but trailed the Russell Midcap Value Index in Q4. However, it outperformed in the prior three quarters, leading to strong results compared to the index and peer group for 2023. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Artisan Mid Cap Value Fund featured stocks like Vontier Corporation (NYSE:VNT) in the fourth quarter 2023 investor letter. Headquartered in Raleigh, North Carolina, Vontier Corporation (NYSE:VNT) is an industrial technology company focused on improving the mobility ecosystem worldwide. On March 27, 2024, Vontier Corporation (NYSE:VNT) stock closed at $44.74 per share. One-month return of Vontier Corporation (NYSE:VNT) was 4.44%, and its shares gained 70.31% of their value over the last 52 weeks. Vontier Corporation (NYSE:VNT) has a market capitalization of $6.885 billion.

Artisan Mid Cap Value Fund stated the following regarding Vontier Corporation (NYSE:VNT) in its fourth quarter 2023 investor letter:

"Vontier Corporation (NYSE:VNT) was a 2020 spinoff from Fortive, itself a spinoff from Danaher. The mobility technologies segment (~76% of total sales) provides fuel dispensing and related software and services to retail and commercial gas stations operating under the Gilbarco Veeder-Root and Orpak Systems brands. At the time of our initial purchase in Q2 2022, the stock was weak for a few reasons. First, an upgrade cycle to EMV, a new payment technology, pulled forward sales into 2021, resulting in a sharper-than-expected hit to 2022–2023 sales. Sentiment was also weak due to supply chain disruptions, concerns about fuel consumption amid higher gas prices in the early months of the Ukraine war and longer term fears regarding electric vehicle market share growth. With these issues easing as of late and the stock selling cheaply, shares have turned higher on steady results. In addition to its cheap valuation, we are attracted to its free cash flow generation, high returns on capital, relatively asset-light business model and strong positioning in an industry that benefits from regulatory-driven demand."

A technician analyzing a sophisticated piece of equipment in a laboratory environment.

Vontier Corporation (NYSE:VNT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Vontier Corporation (NYSE:VNT) was held by 28 hedge fund portfolios, compared to 23 in the previous quarter, according to our database.

We discussed Vontier Corporation (NYSE:VNT) in another article and shared top tech stock picks of Hedge Fund Manager Charles Paquelet. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.

 

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Disclosure: None. This article is originally published at Insider Monkey.