Aristotle Capital Management, LLC, an investment management company, released its “International Equity Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equity markets started the year on a negative note, with the MSCI ACWI Index down 1.32% in Q1. Meanwhile, the Bloomberg Global Aggregate Bond Index rose 2.64% as global fixed income gained ground. Value stocks outperformed growth stocks, with the MSCI ACWI Value Index surpassing the MSCI ACWI Growth Index by 11.59%. Aristotle Capital International Equity returned 3.62% gross of fees (3.50% net of fees), underperforming the MSCI EAFE Index, which returned 6.86%, and the MSCI ACWI ex USA Index, which returned 5.23%. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first-quarter 2025 investor letter, Aristotle Capital International Equity Strategy highlighted stocks such as Magna International Inc. (NYSE:MGA). Magna International Inc. (NYSE:MGA) is a leading auto supplier. The one-month return of Magna International Inc. (NYSE:MGA) was 8.22%, and its shares lost 7.46% of their value over the last 52 weeks. On June 27, 2025, Magna International Inc. (NYSE:MGA) stock closed at $38.45 per share, with a market capitalization of $10.875 billion.
Aristotle Capital International Equity Strategy stated the following regarding Magna International Inc. (NYSE:MGA) in its Q1 2025 investor letter:
“During the quarter, we sold our position in Magna International Inc. (NYSE:MGA) and invested in Fast Retailing. We first invested in Magna International, a Canada based global auto parts, systems and assembly company, in the fourth quarter of 2019. The company, in our opinion, has a unique capability of supplying parts for an increasingly electrified and autonomous fleet of vehicles. This includes Magna’s specialty in lightweighting vehicles—a necessity for heavy electric cars—as well as its years of investment in self driving technologies. In addition, with leading market share positions in many of its core markets and products, we believe Magna remains well-positioned to benefit as content-per-vehicle increases and automotive parts and systems become more complex. Though the company continues to meet our Quality and Valuation criteria, we have diminished confidence in its Catalysts. As such, we exited our position in Magna to fund the purchase of Fast Retailing, which we view as a more optimal investment.”
An assembly line of light trucks in a state-of-the-art manufacturing plant.
Magna International Inc. (NYSE:MGA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Magna International Inc. (NYSE:MGA) at the end of the first quarter, which was 16 in the previous quarter. Magna International Inc.’s (NYSE:MGA) first quarter consolidated sales declined 8% to $10.1 billion. While we acknowledge the potential of Magna International Inc. (NYSE:MGA) 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 undervalued AI stock set for massive gains.
In another article, we covered Magna International Inc. (NYSE:MGA) and shared Hotchkis & Wiley Large Cap Fundamental Value Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of MGA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
