Artisan Partners, an investment management company, released its “Artisan Mid Cap Value Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The Russell Midcap Value Index ended Q4 somewhat lower, down -1.75%, after posting robust gains in Q3. The index provided a 13.07% return for the year. Following the US election, mid-cap value stocks experienced a significant rally with the larger US equity market, hitting all-time highs before declining in December. In the quarter, the fund’s Investor Class fund ARTQX returned -3.70%, Advisor Class fund APDQX posted a return of -3.67%, and Institutional Class fund APHQX returned -3.67%, compared to a -1.75% return for the Russell Midcap Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Artisan Mid Cap Value Fund emphasized stocks such as Vail Resorts, Inc. (NYSE:MTN). Headquartered in Broomfield, Colorado, Vail Resorts, Inc. (NYSE:MTN) is a mountain resorts and ski areas operator. The one-month return Vail Resorts, Inc. (NYSE:MTN) was -2.61%, and its shares lost 26.75% of their value over the last 52 weeks. On March 12, 2025, Vail Resorts, Inc. (NYSE:MTN) stock closed at $161.74 per share with a market capitalization of $6.039 billion.

Artisan Mid Cap Value Fund stated the following regarding Vail Resorts, Inc. (NYSE:MTN) in its Q4 2024 investor letter:

"Top Q4 contributors included Expedia, First Citizens and Vail Resorts, Inc. (NYSE:MTN). For Vail Resorts, a premium skiing, lodging and resort company, good snow accumulation early in the season and better-than-expected pass sales that trended higher since the company’s late-September update lifted shares. After two years of tough weather, featuring below average snowfall and highly variable temperatures that contributed to reduced visitation, the hope is early snow results this winter are a harbinger of a better ski season. Vail is one of a couple dominant players in an industry that benefits from high barriers to entry due to the fixed supply of suitable mountains. Of course, this is a highly seasonal business, dependent on appetite for ski vacations and the right weather conditions, but the company has made strides to improve the business model by increasing the percentage of its business from the advance commitment pass product, which transforms the business from one of uncertainty and weather dependency to one of greater visibility and predictability. This provides stability and the ability to spend on capex during the offseason to improve the guest experience as well as pursue additional footprint expansion. While some years are better than others, the company has been consistently free cash flow positive and prudently allocates capital, with excess capital returned to shareholders, primarily via dividends."

An aerial view of a mountain resort, its snow-capped peaks and lush ski slopes revealed in all their glory.

Vail Resorts, Inc. (NYSE:MTN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Vail Resorts, Inc. (NYSE:MTN) at the end of the fourth quarter which was 38 in the previous quarter. Vail Resorts, Inc. (NYSE:MTN) reported net income of $245.5 million in the second quarter of fiscal 2025 compared to $219.3 million in the prior year's Quarter. While we acknowledge the potential of Vail Resorts, Inc. (NYSE:MTN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Vail Resorts, Inc. (NYSE:MTN) and shared Baron Asset Fund's views on the company. In addition, please check out our hedge fund investor letters Q4 2024 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.