Voss Capital’s New Core Long: Phinia (PHIN)

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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.

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.