Artisan Partners: A Beacon of Stability in Turbulent Markets
Artisan Partners, a stalwart player in the asset management industry, has once again demonstrated its prowess in navigating the unpredictable waters of the financial markets. As reported in their recent Q1 2025 conference call transcript, the company has shown remarkable resilience and consistency, despite the turmoil that has characterized the market landscape.
Eric Colson, CEO of Artisan Partners, highlighted the firm's unique value proposition, built around its ability to thrive in uncertain and volatile markets. With a proven track record of outperformance across various asset classes and strategies, the company has established itself as a trusted partner for investors seeking stability and long-term growth.
One of the key highlights from the quarter was the continued expansion of Artisan Partners' business model. Since 2013, the firm has grown from 5 investment teams to 11, with a corresponding increase in the number of investment strategies offered from 12 to 27. This transformation has enabled the company to evolve into a multi-asset class investment platform, catering to the diverse needs of both traditional institutional clients and private wealth individuals.
Notably, Artisan Partners has made significant strides in realigning its distribution structure and team, shifting towards a more sales-driven culture. Today, approximately 60% of the company's assets under management (AUM) are managed on behalf of intermediated wealth clients, reflecting this strategic pivot.
The firm's investment teams have consistently demonstrated their ability to execute through periods of uncertainty and volatility, leveraging their experience, autonomy, and expertise to add value for clients. As Eric Colson noted, "We believe the same will be true this time around," implying that Artisan Partners is well-equipped to navigate future market challenges.
A striking example of the firm's outperformance was provided by Eric Colson, who cited the Artisan Global Value strategy as a case study. With an average annual return since inception after fees and expenses of 11.1%, this strategy has generated a staggering $4.1 million from a $1 million investment over an 18-year period. In contrast, the same investment in the MSCI ACWI Index would have yielded only $2.9 million, representing a significant 205 basis points of average annual outperformance and a substantial $1.2 million of more wealth.
Throughout this evolution and expansion, Artisan Partners has consistently demonstrated its repeatability across various dimensions – investment leaders, generations, geographies, asset classes, and distribution channels. This stability and consistency have allowed the firm to perform for existing clients, thoughtfully grow its business, and generate a healthy return for shareholders.
As Jason Gottlieb, President of Artisan Partners, will discuss in further detail, the firm's Developing World strategy is poised to join this esteemed group of strategies with track records exceeding 10 years. This milestone represents another testament to the company's commitment to delivering exceptional investment results and its confidence in the future.
In conclusion, Artisan Partners has once again proven itself as a beacon of stability in turbulent markets. With its unique business model, talented investment teams, and unwavering focus on delivering value for clients, the firm is well-positioned to navigate the complexities of the asset management industry and continue to thrive in an uncertain world.
