Ariel Investments, an investment management company, released its “Ariel Focus Fund” fourth-quarter investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund increased 11.95%, compared to a 12.42% return for the Russell 1000 Value Index and a 7.56% return for the S&P 500 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Ariel Focus Fund highlighted stocks BorgWarner Inc. (NYSE:BWA) in the Q4 2022 investor letter. Headquartered in Auburn Hills, Michigan, BorgWarner Inc. (NYSE:BWA) is a supplier of solutions for combustion, hybrid, and electric vehicles. On February 2, 2023, BorgWarner Inc. (NYSE:BWA) stock closed at $48.21 per share. One-month return of BorgWarner Inc. (NYSE:BWA) was 11.73%, and its shares gained 11.31% of their value over the last 52 weeks. BorgWarner Inc. (NYSE:BWA) has a market capitalization of $11.289 billion.
Ariel Focus Fund made the following comment about BorgWarner Inc. (NYSE:BWA) in its Q4 2022 investor letter:
“Shares of leading supplier of solutions for combustion, hybrid and electric vehicles BorgWarner Inc. (NYSE:BWA) also increased on a solid earnings beat, with revenue and margins exceeding expectations. The company continues to successfully execute on its Charging Forward Initiative and remains on track to deliver $4 billion in electric vehicle sales by 2025. At the same time, however, management noted mounting Fx pressure and revised its full year outlook downward. Also in the quarter, BWA announced a new award to supply electric motors for eaxles starting in 2023, as well as a production increase on existing business with a premium European original equipment manufacturer beginning in 2024. In our view, BWA’s electric motor and driveline technology offerings position the company to grow intrinsic value throughout the evolution in hybrid and electric vehicles market.”
BorgWarner Inc. (NYSE:BWA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held BorgWarner Inc. (NYSE:BWA) at the end of the third quarter, which was 32 in the previous quarter.
We discussed BorgWarner Inc. (NYSE:BWA) in another article and shared the list of undervalued mid-cap stocks to buy. In addition, please check out our hedge fund investor letters Q4 2022 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.