Is Magna (MGA) Still a Great Investment Despite Performing Poorly in the Previous Quarter?

Vltava Fund, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. In its Q4 2021 investor letter, Vltava Fund described 2021 as a year of very strong growth in profitability among the companies they own in their portfolio, as the profits of the companies they hold grew even faster than did the Fund’s NAV. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Vltava Fund, in its Q4 2021 investor letter, mentioned Magna International Inc. (NYSE: MGA) and discussed its stance on the firm. Magna International Inc. is an Aurora, Canada-based mobility technology company with a $25.7 billion market capitalization. MGA delivered a 5.71% return since the beginning of the year, while its 12-month returns are up by 12.80%. The stock closed at $85.56 per share on January 07, 2022.

Here is what Vltava Fund has to say about Magna International Inc.  in its Q4 2021 investor letter:

“Of course, not all of our companies are doing better than we expected. Magna fell somewhat short of our expectations last year. In the cases of Magna, reasons are disruptions in the supply and logistics chains. Magna, as a major automotive supplier, suffers indirectly from the same chip shortages as does BMW, for example. In Magna’s case, the trouble is that it does not have the same kind of pricing power vis-à-vis its customers as does BMW, and the lower and irregular production is negatively reflected in its profitability.”

Pixabay/Public Domain

Based on our calculations, Magna International Inc. (NYSE: MGA) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. MGA was in 29 hedge fund portfolios at the end of the third quarter of 2021, compared to 39 funds in the previous quarter. Magna International Inc. (NYSE: MGA) delivered a 3.10% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on MGA in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

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