Is it Wise to Acquire Ford (F) Shares?

Baron Funds, an asset management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. The first quarter of 2022 has been a difficult one for many mutual funds, especially for funds like Baron mutual funds which have significant investments in rapidly growing technology businesses. Current market volatility and lower stock prices are principally a consequence of persistent above-normal inflation. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022. 

In its Q1 2022 investor letter, Baron Fund mentioned Ford Motor Company (NYSE:F) and explained its insights for the company. Founded in 1903, Ford Motor Company (NYSE:F) is a Dearborn, Michigan-based multinational automobile manufacturer with a $54.3 billion market capitalization. Ford Motor Company (NYSE:F) delivered a -34.86% return since the beginning of the year, while its 12-month returns are down by -12.60%. The stock closed at $13.53 per share on June 08, 2022.

Here is what Baron Fund has to say about Ford Motor Company (NYSE:F) in its Q1 2022 investor letter:

“Ford (NYSE:F) is another example of typical industrial manufacturing business executive mindsets. The April 18, 2022, Bloomberg Businessweek cover story features Ford CEO Jim Farley behind the wheel of an electrified Ford F-150 Lightning. The article is titled, “Hey Elon, THIS is a truck.” I thought the article was terrific. One idea especially stood out to me. Since the F-150 is such a popular vehicle, it “argued for a gradual approach to electrification. Essentially the company retrofitted an existing F-150 with an electric powertrain rather than develop an entirely new truck.” No all-in financial and operation bet by this company on electrification.”

Image by Marcin Machalski from Pixabay

Our calculations show that Ford Motor Company (NYSE:F) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Ford Motor Company (NYSE:F) was in 46 hedge fund portfolios at the end of the first quarter of 2022, compared to 53 funds in the previous quarter. Ford Motor Company (NYSE:F) delivered a -17.35% return in the past 3 months.

In June 2022, we published an article that includes Ford Motor Company (NYSE:F) in These 5 Companies Recently Announced Layoffs, Hiring Freeze Amid Recession Fears. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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