Taiwan Semiconductor (TSM) Declined due to Recession Concerns

Mawer Investment Management, an asset management company, released its second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter the Mawer International Equity Fund returned -13.6%, Emerging Markets Equity Fund returned – 10.6%, EAFE Large Cap Fund returned – 14.8%, Canadian Equity Fund returned -11.3%, New Canada Fund returned -14%, U.S. Equity Fund returned – 10.9%, Global Equity Fund returned -10.3% and Global Small Cap Fund returned -11.5%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Mawer discussed stocks like Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in the second quarter investor letter. Headquartered in Hsinchu City, Taiwan, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) engages in the business of integrated circuits and other semiconductor devices. On September 13, 2022, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock closed at $78.81 per share. One-month return of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was -11.65% and its shares lost 35.14% of their value over the last 52 weeks. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)  has a market capitalization of $391.912 billion.

Here is what Mawer specifically said about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q2 2022 investor letter:

“More recently, as concerns about the economic outlook have grown, it is no longer just inflationary concerns and discount rate considerations that are impacting stock prices. Given an increasing probability of a recession, stock prices declined for holdings such as Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), a business where end market demand could wane in a recessionary environment, and Ashtead Group, an economically sensitive construction equipment rental company. In both of these cases the pullback is due less from recent results, and more from uncertainty in the economic outlook. More cyclical businesses such as those within metals and mining also experienced sharp declines over the second quarter. Our general underweight exposure to such materials businesses, which we believe are typically less competitively advantaged, had a positive impact on relative performance.”

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Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 72 hedge fund portfolios held Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at the end of the second quarter which was 81 in the previous quarter.

We discussed Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in another article and shared Baron Funds’ views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

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