Artisan International Fund (ARTIX) and Artisan International Value Fund (ARTKX) – Security Selection

Both Artisan International Fund (ARTIX) and Artisan International Value Fund (ARTKX) show excellent security selection (stock picking) performance over the past 10 years.

If all markets were flat for the past 10 years, ARTIX would have generated approximately 0% cumulative return from stock picking. This is not bad: The average fund would have lost money, even with the massive survivor bias of the peer group (funds that have been around for 10 years):

Chart of the Security Selection Return of Artisan International Fund (ARTIX)

Artisan International Fund (ARTIX) Security Selection Return

The results of ARTKX are spectacular. It would have made over 35% if markets were flat – one of the best track records among domestic and international funds:

Chart of the Security Selection Return of Artisan International Value Fund (ARTKX)

Artisan International Value Fund (ARTKX) Security Selection Return

A word of caution: ARTIX shows signs of over-capitalization and position scalability issues. It lost approximately 30% over the past 10 years due to position sizing. Its largest positions were (consistently) its worst stock picks:

The Position Sizing Return of Artisan International Fund (ARTIX)

Artisan International Fund (ARTIX) Position Sizing Return

In summary: Stock picking skills of the flagship international funds appear strong, but their scalability is a concern.

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