Is II-VI Incorporated (IIVI) A Smart Long-Term Buy?

Giverny Capital, an asset management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly net return of 10.73% was delivered by the fund for the fourth quarter of 2021, slightly below its benchmark, the S&P 500 Index, which delivered an 11.03% gain for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Giverny Capital Asset Management, in its Q4 2021 investor letter, mentioned II-VI Incorporated (NASDAQ: IIVI) and discussed its stance on the firm. II-VI Incorporated is a Saxonburg, Pennsylvania-based semiconductor manufacturing company with a $6.3 billion market capitalization. IIVI delivered a -12.12% return since the beginning of the year, while its 12-month returns are down by -28.57%. The stock closed at $60.05 per share on January 28, 2022.

Here is what Giverny Capital Asset Management has to say about II-VI Incorporated in its Q4 2021 investor letter:

“As for purchases, in the fourth quarter we added modestly to our holding in II-VI Inc. We talked about II-VI (pronounced Two-Six) in our third quarter letter and will repeat that we continue to believe this optical components manufacturer is well-positioned in a variety of growing markets, including network communications; electric vehicles; industrial automation and defense. II-VI’s share price plunged after it emerged as the high bidder for the laser technology company Coherent last summer. We bought II-VI after the plunge, and in our first months of ownership, the stock has performed well.”

Best Semiconductor Stocks to Buy in 2021

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Our calculations show that II-VI Incorporated (NASDAQ: IIVI) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. IIVI was in 24 hedge fund portfolios at the end of the third quarter of 2021, compared to 29 funds in the previous quarter. II-VI Incorporated (NASDAQ: IIVI) delivered a -0.76% return in the past 3 months.

In March 2021, we also shared another hedge fund’s views on IIVI in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.