5 Recent Spin-off Companies That Hedge Funds Are Piling Into

In this article, we discuss the 5 recent spin-off companies that hedge funds are piling into. To read the detailed analysis of spin-off companies and their recent performance, go directly to the 11 Recent Spin-off Companies That Hedge Funds Are Piling Into.

5. PHINIA Inc. (NYSE:PHIN)

Number of Hedge Fund Holders: 27

In July 2023, BorgWarner Inc. (NYSE:BWA) spun off its fuel systems and aftermarket segments into an independent company, PHINIA Inc. (NYSE:PHIN).

On November 15, PHINIA Inc. (NYSE:PHIN) declared its quarterly dividend of $0.25, which is payable by December 15 to the shareholders of record on December 1. The stock’s dividend yield was 3.45% at the time of writing on December 15.

Ariel Investments mentioned PHINIA Inc. (NYSE:PHIN) in its third-quarter 2023 investor letter. Here is what it said:

“Finally, we established a position in manufacturer of premium fuel and electrical systems, PHINIA Inc. (NYSE:PHIN), which was a spinoff from BorgWarner Inc. (BWA). Phinia is focused on the design and development of performance and emissions components of combustion and hybrid vehicles. The remaining BWA business produces components with similar capabilities, however, BWA is focused on electric vehicles. Overall, the market is excited about the longer-term organic growth of BWA at lower margins versus the higher margin Phinia business given questions of how long demand for combustion/hybrid vehicles will continue.”