Top 5 Stock Picks Of Don Morgan’s Brigade Capital

4. Magnachip Semiconductor Corporation (NYSE:MX)

Mr. Morgan’s Stake Value: $24 million

Percentage of Mr. Morgan’s 13F Portfolio: 1.47%

Number of Hedge Fund Holders: 35

Magnachip Semiconductor Corporation (NYSE:MX) is a Luxembourgian firm that concerns itself with designing., manufacturing and selling semiconductors for consumers, industrial, automotive and other applications such as the Internet of Things (IoT). Some of the products that it provides are controllers, diodes and transistors for several applications.

By the end of the second quarter 2021, Mr. Morgan held roughly one million Magnachip Semiconductor Corporation (NYSE:MX) shares that were worth $24 million and represented 1.47% of his portfolio. During the same time period, 35 of 873 hedge funds polled by Insider Monkey had held a stake in the company.

Magnachip Semiconductor Corporation’s (NYSE:MX) largest shareholder is Howard Marks’s Oaktree Capital Management who owns 2 million shares worth $47 million.

In a first quarter 2021 investor letter, Wasatch Global Investors mentioned Magnachip Semiconductor Corporation (NYSE:MX) and stated that:

“Magnachip Semiconductor Corp. (MX) also contributed to Fund performance. The company designs, develops and manufactures mixed-signal and digital multimedia semiconductors. We think Magnachip is a classic “growth at a reasonable price” (GARP) company. The stock was a laggard in 2020, but our belief was that Wall Street underappreciated the company’s earnings and that the P/E ratio would exceed expectations going forward. In the first quarter, we think Magnachip benefited from the realization that the company is a steady—if not spectacular—grower as there was a rotation in preference away from higher-priced growth stocks and toward lower-priced growth stocks. The stock also benefited from news that the company has agreed to be acquired.”