Is it Worthy to Invest in CNH Industrial (CNHI)?

Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, published its “Longleaf Partners Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. Longleaf Partners Fund added 6.18% in the fourth quarter, taking returns for the full year to 23.58%, well ahead of its absolute return goal. However, the S&P 500 rallied 11.03% in the fourth quarter, taking the index’s full-year returns to 28.71%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Longleaf Partners Fund, in its Q4 2021 investor letter, mentioned CNH Industrial N.V. (NYSE: CNHI) and discussed its stance on the firm. CNH Industrial N.V. is an Amsterdam, Netherlands-based agricultural machinery company with a $19.6 billion market capitalization. CNHI delivered a -14.19% return since the beginning of the year, while its 12-month returns are up by 12.34%. The stock closed at $14.49 per share on February 25, 2022.

Here is what Longleaf Partners Fund has to say about CNH Industrial N.V. in its Q4 2021 investor letter:

CNH Industrial (55%, 2.51%; 16%, 0.65%), a leading farm equipment and commercial vehicle manufacturer globally, was another top performer for the year. CNH reported strong results throughout the year, beating our initial conservative expectations. The US agricultural cycle has been firmly in the company’s favor, driven by commodity price strength, healthy farm balance sheets, advanced technology adoption, and aging fleets feeding replacement demand. We believe we are past the mid-cycle but expect the strong upcycle to continue with the solid orderbooks and strong visibility. On December 31, 2021, CNHI completed the demerger of its on-highway business, which includes its IVECO commercial vehicles and FPT powertrain businesses. This transaction creates a pure play off-highway company comprised of the higher-multiple agricultural, construction and specialty vehicle businesses. We expect a narrowing of the discount to the net asset value once we have two focused companies valued at peer multiples.”

Our calculations show that CNH Industrial N.V. (NYSE: CNHI) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. CNHI was in 35 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 25 funds in the previous quarter. CNH Industrial N.V. (NYSE: CNHI) delivered a -1.58% return in the past 3 months.

In January 2022, we also shared another hedge fund’s views on CNHI 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.