Is Tenneco (TEN) a Smart Long-Term Buy?

Miller Value Partners, an investment management firm, published its “Deep Value Strategy” first quarter 2022 investor letter – a copy of which can be downloaded here. After a challenging back half of 2021, where the portfolio experienced significant valuation compression, the Deep Value Strategy bounced back and has had a strong start to the year. For the quarter, the Deep Value Strategy was up more than 30%, significantly ahead of the S&P 1500 Value Index and the overall market. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Miller Value Partners Deep Value Strategy mentioned Tenneco Inc. (NYSE:TEN) and explained its insights for the company. Founded in 1940, Tenneco Inc. (NYSE:TEN) is a Lake Forest, Illinois-based automotive product for original equipment and aftermarket customers manufacturer with a $1.3 billion market capitalization. Tenneco Inc. (NYSE:TEN)  delivered a 47.17% return since the beginning of the year, while its 12-month returns are up by 20.51%. The stock closed at $16.63 per share on May 13, 2022.

Here is what Miller Value Partners Deep Value Strategy has to say about Tenneco Inc. (NYSE:TEN) in its Q1 2022 investor letter:

“During the quarter, more than half of the portfolio weighting were in holdings that were up in excess of 25%. Our two largest positive contributors includes Tenneco (NYSE:TEN) up in excess of 60%. Tenneco benefitted during the quarter from the announcement that Apollo will take the auto supplier private at a 100% premium to its current market price. While the recent supply chain issues have weighed on the auto industry and supplier companies, Tenneco became significantly mispriced, and we were fortunate to have increased our position size in the later part of 2021.”

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Our calculations show that Tenneco Inc. (NYSE:TEN) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Tenneco Inc. (NYSE:TEN) was in 26 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 27 funds in the previous quarter. Tenneco Inc. (NYSE:TEN) delivered a 72.33% return in the past 3 months.

In August 2021, we published an article that includes Tenneco Inc. (NYSE:TEN) in 10 Best Small-Cap Stocks to Buy According to Hedge Funds. 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.