Ariel Investments, an investment management company, released its “Ariel Focus Fund” third-quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund fell -5.87 % compared to a -3.16% and -3.27% decline for the Russell 1000 Value Index and the S&P 500 Index, respectively. Global markets fell in the third quarter. In this context, the government bond yield spiked, which put pressure on the equities and led the high values “magnificent seven” to lose their shine. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Ariel Focus Fund highlighted stocks like PHINIA Inc. (NYSE:PHIN) in the third quarter 2023 investor letter. Headquartered in Auburn Hills, Michigan, PHINIA Inc. (NYSE:PHIN) designs, develops, and manufactures gasoline and diesel fuel injection components and systems. On December 8, 2023, PHINIA Inc. (NYSE:PHIN) stock closed at $26.60 per share. One-month return of PHINIA Inc. (NYSE:PHIN) was 10.65%, and its shares gained 0.23% of their value over the last three months. PHINIA Inc. (NYSE:PHIN) has a market capitalization of $1.242 billion.
Ariel Focus Fund made the following comment about PHINIA Inc. (NYSE:PHIN) in its third 2023 investor letter:
“Finally, we established a position in manufacturer of premium fuel and electrical systems, PHINIA Inc. (NYSE:PHIN), which was a spinoff from BorgWarner Inc. (BWA). Phinia is focused on the design and development of performance and emissions components of combustion and hybrid vehicles. The remaining BWA business produces components with similar capabilities, however, BWA is focused on electric vehicles. Overall, the market is excited about the longer-term organic growth of BWA at lower margins versus the higher margin Phinia business given questions of how long demand for combustion/hybrid vehicles will continue.”
Workers assembling a state-of-the-art engine in a modern auto factory.
PHINIA Inc. (NYSE:PHIN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held PHINIA Inc. (NYSE:PHIN) at the end of third quarter which was 0 in the previous quarter.
We discussed PHINIA Inc. (NYSE:PHIN) in another article and shared the list of best young stocks to buy and hold for 20 years. In addition, please check out our hedge fund investor letters Q3 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.
