Ariel Investments, an investment management firm, published its “Ariel Fund & Ariel Appreciation Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. For the three months ending December 31, 2021, Ariel Fund and Ariel Appreciation Fund lagged their primary value benchmarks. This was largely due to some weakness among our highest conviction consumer names. Still, Ariel Appreciation Fund solidly outpaced its core benchmark during the quarter and landed between the value and core indices for the full year. Meanwhile, Ariel Fund crushed both its primary and secondary benchmarks for the year. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Ariel Investments, in its Q4 2021 investor letter, mentioned Resideo Technologies, Inc. (NYSE:REZI) and discussed its stance on the firm. Founded in 2018, Resideo Technologies, Inc. (NYSE:REZI) is an Austin, Texas-based home comfort and security solutions provider with a $3.8 billion market capitalization, and is currently spearheaded by its CEO, Jay Geldmacher. Resideo Technologies, Inc. (NYSE:REZI) delivered a 1.04% return since the beginning of the year, while its 12-month returns are down by -6.14%. The stock closed at $26.30 per share on March 21, 2022.
Here is what Ariel Investments has to say about Resideo Technologies, Inc. (NYSE:REZI) in its Q4 2021 investor letter:
“During the quarter, Ariel Fund added shares of leading supplier of residential thermal, comfort, and security solutions, Resideo Technologies, Inc. (REZI). While the company has struggled to find its footing since being spun-out of Honeywell in 2018, we see early evidence that the new management’s long-term strategic vision is both achievable and not yet being embraced by investors. We view this as an opportunity to own a niche business, well positioned to benefit from the ongoing housing recovery and a secular preference for more connected smart home solutions.”
Our calculations show that Resideo Technologies, Inc. (NYSE:REZI) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Resideo Technologies, Inc. (NYSE:REZI) was in 24 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 28 funds in the previous quarter. Resideo Technologies, Inc. (NYSE:REZI) delivered a 2.61% return in the past 3 months.
In June 2021, we also shared another hedge fund’s views on Resideo Technologies, Inc. (NYSE:REZI) 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.
