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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.