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Should Value Investors Buy Amphenol (APH) Stock?

Aoris Investment Management recently released its Q1 2020 Investor Letter, a copy of which you can download below. The Aoris International Fund aims to generate returns of 8–12% p.a. over a market cycle. The portfolio is long-only and highly selective. You should check out Aoris Investment Management’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash. There weren’t a lot of funds who could deliver these kinds of returns without shorting the market or using aggressive put options.

In the said letter, Aoris Investment Management highlighted a few stocks and Amphenol Corp (NYSE:APH) is one of them. Amphenol is fiber optic cable manufacturing company. Year-to-date, Amphenol Corp (NYSE:APH) stock lost 16.9% and on May 21st it had a closing price of $90.21. Here is what Aoris Investment Management said:

“Amphenol is a world-leading maker of electronic connectors, which are used to join electrical circuits. It has a strong corporate culture and managers ‘spend shareholders’ money as if it were their own’. Tenure at the executive and general manager levels is unusually long. Net debt to EBITDA ended 2019 at 1.4x, a level we view as comfortable.

Sales this year will decline, reflecting soft end markets, particularly automotive production. As end markets begin to recover, we expect Amphenol to take share at an accelerating rate, benefiting from its proven ability to rapidly increase production. Amphenol has an excellent record of adding value through bolt-on acquisitions, and we expect the next few years to be particularly productive on this front.”

Earnings Analysis Amphenol Corp. Cl A (NYSE:APH)

In Q4 2019, the number of bullish hedge fund positions on Amphenol Corp (NYSE:APH) stock increased by about 9% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with APH’s growth potential. Our calculations showed that Amphenol Corp (NYSE:APH) isn’t among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, we believe electric vehicles and energy storage are set to become giant markets, and we want to take advantage of the declining lithium prices amid the COVID-19 pandemic. So we asked astrophysicist Neil deGrasse Tyson about Tesla, Elon Musk, and his top stock picks. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. You can subscribe to our free enewsletter below to receive our stories in your inbox:

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

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