Ariel Investment, an investment management company, released its “Ariel Fund” third-quarter investor letter. A copy of the same can be downloaded here. In the third quarter, the fund generated a loss of -7.47%, underperforming the Russell 2500 Value Index, which returned a loss of -4.50%, and the Russell 2500 Index, which returned a -2.82% loss. Inflation concerns, Russia-Ukraine tension, energy price, and Federal Reserve’s aggressive actions impacted the investors’ confidence in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Ariel Investment highlighted stocks like Generac Holdings Inc. (NYSE:GNRC) in its Q3 2022 investor letter. Headquartered in Waukesha, Wisconsin, Generac Holdings Inc. (NYSE:GNRC) is a power generation equipment, energy storage systems, and other power product manufacturer and supplier. On December 1, 2022, Generac Holdings Inc. (NYSE:GNRC) stock closed at $103.09 per share. One-month return of Generac Holdings Inc. (NYSE:GNRC) was 1.82% and its shares lost 73.26% of their value over the last 52 weeks. Generac Holdings Inc. (NYSE:GNRC) has a market capitalization of $6.531 billion.
Ariel Investment made the following comment about Generac Holdings Inc. (NYSE:GNRC) in its Q3 2022 investor letter:
“We also bought shares of former position Generac Holdings Inc. (NYSE:GNRC), a leading global manufacturer of power generation equipment. The company has an unmatched distribution network and product portfolio and enjoys strong brand advantages. We believe this creates a wide moat for this niche business which commands a 75% market share in the North American residential market. Historically, growth has been limited due to a lack of awareness around the benefits of having a home standby generator, as well as its high price point. More recently, however, elevated power outage events, both weather-related and due to aging infrastructure, have tipped the scales of awareness in both the residential and commercial markets, which should result in a long-runway of market penetration-led growth, margin expansion and free cash flow generation. The stock was a pandemic darling but has since traded off substantially giving us an opportunity to acquire shares in this unique, high-quality business.”
Christian Lagerek/Shutterstock.com
Generac Holdings Inc. (NYSE:GNRC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Generac Holdings Inc. (NYSE:GNRC) at the end of the third quarter which was 34 in the previous quarter.
We discussed Generac Holdings Inc. (NYSE:GNRC) in another article and shared the list of stocks receiving downgrades from analysts. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 12 Most Popular Jean Brands in America
- 10 Biggest Donut Companies and Brands in the World
- 15 Biggest Copper Companies in the World
Disclosure: None. This article is originally published at Insider Monkey.