Artisan Partners(US:APAM)2023-02-01 19:48Artisan Partners Business Model & Philosophy - Artisan Partners' business is built on a consistent philosophy and business model focused on high value-added active strategies, talent-driven autonomous franchises, and thoughtful long-term growth [2] - The company's financial model emphasizes sustainable long-term growth, fee discipline, high variable costs, a conservative balance sheet, and aligned interests [14] Artisan Partners Historical Financial Performance - Since 2012, Artisan Partners has experienced a compounded annual growth rate of 8% in average AUM, 7% in revenue, and 5% in adjusted operating income [16] - For the year 2022, Artisan Partners' revenue was $993.3 million, a decrease of 19% compared to $1227.2 million in 2021 [30] - The adjusted operating income for 2022 was $340.3 million, a decrease of 37% compared to $540.8 million in 2021 [30] - The adjusted operating margin for 2022 was 34.3%, a decrease of 980 bps compared to 44.1% in 2021 [30] - In Q4 2022, revenues decreased by 4% to $226 million compared to Q3 2022's $234.3 million [29] - Adjusted operating expenses in Q4 2022 decreased by 1% to $157.2 million compared to Q3 2022's $155.4 million [29] Assets Under Management (AUM) - Assets Under Management (AUM) decreased by 27% from $174.8 billion in 2021 to $127.9 billion in 2022 [24] - Average AUM decreased by 18% from $171.8 billion in 2021 to $141.5 billion in 2022 [24] - Net client cash flows for the year 2022 were $(9.8) billion [24] Credit Team Performance - Since inception, the High Income strategy has an average annual value added of 178 bps [4] - Since inception, the Credit Opportunities strategy has an average annual value added of 631 bps [4] - Since its launch on January 1, 2022, the Floating Rate strategy has a value added of -42 bps [4]