Ensemble Capital, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. In the letter, the fund has focused on economic and COVID-related commentary. The fund also covered the notable detractors and contributors to its fourth-quarter investment performance and offered a discussion of an aspect of its investment strategy. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Ensemble Capital Management, in its Q4 2021 investor letter, mentioned Ferrari N.V. (NYSE: RACE) and discussed its stance on the firm. Ferrari N.V. is a Maranello, Italy-based manufacturing company with a $43.1 billion market capitalization. RACE delivered a -10.24% return since the beginning of the year, while its 12-month returns are up by 9.54%. The stock closed at $232.31 per share on January 21, 2022.
Here is what Ensemble Capital Management has to say about Ferrari N.V. in its Q4 2021 investor letter:
“After navigating the pandemic extraordinarily well for a car company despite major challenges to maintaining production levels, Ferrari’s stock was weak to begin the year and then bounced around in a relatively tight range even as the broader market rallied. But when the company held their third quarter earnings call and highlighted their efforts in transitioning to electric powertrains, the stock took off and finished the quarter up 24%. One well known Wall Street analyst even labeled Ferrari his “favorite electric vehicle stock.” But in our view, Ferrari’s efforts to shift to hybrid and electric cars has been understood by long term investors for some time. While we were pleased to see the stock rally and better reflect our assessment of the value of the company, we didn’t see the commentary coming out of their earnings call as being particularly incremental to our investment thesis. That being said, it was great to hear their new CEO strongly endorse their electrification strategy.”
Our calculations show that Ferrari N.V. (NYSE: RACE) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. RACE was in 27 hedge fund portfolios at the end of the third quarter of 2021, compared to 27 funds in the previous quarter. Ferrari N.V. (NYSE: RACE) delivered a 4.17% return in the past 3 months.
In July 2021, we also shared another hedge fund’s views on RACE 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.