Is it Take-Profit Time for Johnson Controls International (JCI)?

Oakmark Funds, an investment management firm, published its “Oakmark Global Fund” fourth quarter 2021 investor letter – a copy of which can be seen here.  A return of 3.94% was reported by the fund in the fourth quarter of 2021, extending its 12-month return to 18.80%. Since inception, the fund had an average total return of 10.28%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Oakmark Global Fund, in its Q4 2021 investor letter, mentioned Johnson Controls International plc (NYSE: JCI) and discussed its stance on the firm. Johnson Controls International plc is a Cork, Ireland-based HVAC company with a $50.2 billion market capitalization. JCI delivered a -12.00% return since the beginning of the year, while its 12-month returns are up by 45.01%. The stock closed at $71.55 per share on January 27, 2022.

Here is what Oakmark Global Fund has to say about Johnson Controls International plc in its Q4 2021 investor letter:

“Our U.S. final sale was Johnson Controls, a leading global supplier of fire detection and HVAC (heating, ventilation and air conditioning) systems. We originally purchased the shares believing that the new management team had the potential to improve profit margins meaningfully. Management has made progress on this goal, but part of this progress must be attributed to Covid-19. The pandemic inspired building owners to invest aggressively in new air handling and filtration systems, a Johnson Controls specialty. Management also executed a well-timed portfolio transaction, selling the company’s traditional car battery business for a good price before the trend favoring automotive electrification became dominant. The company’s stock has performed well over the past year, and we sold the Fund’s shares to reinvest in undervalued holdings.”

HVAC, Aircon


Our calculations show that Johnson Controls International plc (NYSE: JCI) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. JCI was in 45 hedge fund portfolios at the end of the third quarter of 2021, compared to 39 funds in the previous quarter. Johnson Controls International plc (NYSE: JCI) delivered a -2.56% return in the past 3 months.

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.