5 Long-Term Stock Picks of Skylands Capital

Below we present the list of 5 Long-Term Stock Picks of Skylands Capital. For our methodology and a more comprehensive list please see 10 Long-Term Stock Picks of Skylands Capital.

5. General Motors Company (NYSE:GM)

Value of Skylands Capital‘s 13F Position: $27.9 million

Number of Hedge Fund Shareholders: 77

Charles Paquelet’s Skylands Capital has been a General Motors Company (NYSE:GM) shareholder since the final quarter of 2010, when the company emerged from bankruptcy protection. Despite transforming itself into one of the better run car companies in the U.S since its bankruptcy, GM shares have gained just 5% in the nearly 12 years since its re-emergence on the public markets.

Chip shortages have weighed on General Motors Company (NYSE:GM)’s ability to push out vehicles, particularly its high-end and high-margin trucks and SUVs. That’s particularly unfortunate for the carmaker given the pent-up demand for those vehicles, as dealers are averaging just 15 and 10 days of supply for the company’s pickups and SUVs respectively. The result was a 43% plunge in operating profit during Q2, to $2.3 billion.

The Diamond Hill Large Cap Fund owns over 11 million GM shares, but cautioned potential General Motors Company (NYSE:GM) investors in its Q1 2022 investor letter:

“General Motors—and the auto industry in general—continues to face headwinds related to supply chain disruptions and raw material cost inflation. In addition, uncertainty surrounding global energy markets due to inflation and the conflict in Ukraine has created a greater economic burden on consumers, which tends to slow automotive sales.”