Hotchkis & Wiley Funds, an investment management company, released its “Hotchkis & Wiley Mid-Cap Value Fund” third quarter 2024 investor letter. A copy of the same can be downloaded here. In the third quarter of 2024, the Russell Midcap Index produced a strong +9.2% return. Over the course of the quarter, the Russell Midcap Value Index beat the Russell Midcap Growth Index by +10.1% vs +6.5%. Macroeconomic factors significantly influenced market performance during the quarter. The fund returned 6.03% in the quarter, underperforming the 10.08% returns for the Russell Midcap Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Hotchkis & Wiley Mid-Cap Value Fund highlighted stocks like Adient plc (NYSE:ADNT), in the third quarter 2024 investor letter. Adient plc (NYSE:ADNT) is a manufacturer of seating systems and components. The one-month return of Adient plc (NYSE:ADNT) was -10.14%, and its shares lost 53.14% of their value over the last 52 weeks. On December 24, 2024, Adient plc (NYSE:ADNT) stock closed at $17.29 per share with a market capitalization of $1.467 billion.
Hotchkis & Wiley Mid-Cap Value Fund stated the following regarding Adient plc (NYSE:ADNT) in its Q3 2024 investor letter:
“Adient plc (NYSE:ADNT) domiciled in England, is one of the world’s largest suppliers of automotive seating systems and interior components. Adient’s business is defensible due to long product cycles, its global just-in-time (JIT) infrastructure, and established original equipment manufacturer “OEM” relationships. Adient’s new management team is in the process of turning around a series of poor decisions left by the former team: eliminating non-core activities, rewriting customer contracts, and lowering the company’s break-even production levels. In fiscal Q3 (calendar Q2), Adient reported disappointing results, primarily due to weakness in Europe, missing consensus estimates across the board. As a result, management lowered the company’s fiscal year guidance. However, the management team has continued to repurchase their undervalued shares, with the fully diluted share count down approximately 6.6% year-over-year. We believe the stock remains undervalued, and we have taken this opportunity to increase our exposure.”
A carpenter assembling an automotive seating system, using components, frames and mechanisms.
Adient plc (NYSE:ADNT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Adient plc (NYSE:ADNT) at the end of the third quarter which was 22 in the previous quarter. The full year sales of Adient plc (NYSE:ADNT) were approximately $14.7 billion, down about 5%. While we acknowledge the potential of Adient plc (NYSE:ADNT) 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 Adient plc (NYSE:ADNT) and shared the list of most oversold small cap stocks to buy. 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.