Miller Value Partners, an investment management company, released its “Income Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the strategy gained 3.14% (net of fees) outperforming the ICE Bank of America High Yield Index’s 1.63% return and underperforming the S&P 500 Index’s 8.74% gain. Year-to-date, the strategy returned 0.48%. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Miller Value Partners Income Strategy highlighted stocks like Stellantis N.V. (NYSE:STLA) in the second quarter 2023 investor letter. Headquartered in Hoofddorp, the Netherlands, Stellantis N.V. (NYSE:STLA) engages in the design, manufacturing, distribution and sale of vehicles that offers products under Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS, Fiat, Fiat Professional, Jeep, Lancia, Opel, Peugeot, Ram, and Vauxhall brands. On July 25, 2023, Stellantis N.V. (NYSE:STLA) stock closed at $18.51 per share. One-month return of Stellantis N.V. (NYSE:STLA) was 9.40%, and its shares gained 38.24% of their value over the last 52 weeks. Stellantis N.V. (NYSE:STLA) has a market capitalization of $57.604 billion.
Miller Value Partners Income Strategy made the following comment about Stellantis N.V. (NYSE:STLA) in its second quarter 2023 investor letter:
“We initiated a starter position in Stellantis N.V. (NYSE:STLA), which makes Jeep, Dodge and Fiat cars. The company has a nearly 8% dividend yield with enough net cash (cash minus debt) on the balance sheet to cover the dividend for almost five years. The company trades at 1.7x operating profits, which means the market is already expecting a likely drop in cash flow. Still, the shares appear to be worth meaningfully more than where they trade, and management is heavily aligned with stockholders with a 14% stake. They share our view that the valuation is compelling, as the company plans on repurchasing ~3% of shares outstanding this year.”
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Stellantis N.V. (NYSE:STLA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Stellantis N.V. (NYSE:STLA) at the end of first quarter which was 28 in the previous quarter.
We discussed Stellantis N.V. (NYSE:STLA) in another article and shared the list of undervalued European stocks to buy. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
