Voss Capital, LLC an investment management company, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. Voss Capital’s funds, Voss Value Fund, LP, and the Voss Value Offshore Fund, Ltd returned +7.6% and+7.4% to investors net of fees and expenses respectively, in the quarter compared to a +9.3% return for the Russell 2000 Index, +10.2% return for the Russell 2000 Value Index, and +5.9% return for the S&P 500 Index. The Voss Value Master Fund’s total gross exposure stood at 184.5% and the net long exposure was 85.0% at the end of the third quarter. The weight of the fund’s top 10 longs was 72.1% and the top 10 shorts was -36.5%. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Voss Capital highlighted stocks like PHINIA Inc. (NYSE:PHIN), in the third quarter 2024 investor letter. PHINIA Inc. (NYSE:PHIN), a spin-off from BorgWarner (BWA), develops, designs, and manufactures integrated components and systems for commercial and light vehicles, and industrial applications to optimize performance, increase efficiency, and reduce emissions. The one-month return of PHINIA Inc. (NYSE:PHIN) was -3.43%, and its shares gained 70.79% of their value over the last 52 weeks. On December 17, 2024, PHINIA Inc. (NYSE:PHIN) stock closed at $50.93 per share with a market capitalization of $2.142 billion.
Voss Capital stated the following regarding PHINIA Inc. (NYSE:PHIN) in its Q3 2024 investor letter:
“We are long shares of PHINIA Inc. (NYSE:PHIN). A recent spin-off from Borg Warner (BWA), the company is an auto parts supplier that operates two distinct businesses – 1) Fuel Systems (original equipment manufacturer supplier) and 2) Aftermarket automotive products supplier.
The Fuels Systems business is uniquely positioned to capitalize on attractive competitive dynamics that we believe will allow the company to take gobs of market share in its niche markets over the coming years. As an internal combustion engine (ICE) parts supplier pure play, overly hyped expectations of electric vehicle (EV) penetration created an especially good long-term buying opportunity in PHIN earlier in the year…” (Click here to read the full text)
Workers assembling a state-of-the-art engine in a modern auto factory.
PHINIA Inc. (NYSE:PHIN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held PHINIA Inc. (NYSE:PHIN) at the end of the third quarter which was 35 in the previous quarter. In the third quarter 2024, PHINIA Inc. (NYSE:PHIN) generated $839 million in sales, down 6.4% from Q3 2023. While we acknowledge the potential of PHINIA Inc. (NYSE:PHIN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed PHINIA Inc. (NYSE:PHIN) and shared the list of most promising small-cap stocks according to hedge funds. In addition, please check out our hedge fund investor letters Q3 2024 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.