1. Westinghouse Air Brake Technologies Corporation (NYSE:WAB)
3G Sahana Capital Management Stake Value: $195,499,000
Percentage of 3G Sahana Capital Management’s 13F Portfolio: 21.98%
Number of Hedge Fund Holders: 38
Westinghouse Air Brake Technologies Corporation (NYSE:WAB) provides rail sector equipment, systems, and value-added services. In the fourth quarter of 2021, 38 hedge funds held stakes in Westinghouse Air Brake Technologies Corporation (NYSE:WAB) worth $3.02 billion, compared to the same number of funds holding stakes in Westinghouse Air Brake Technologies Corporation (NYSE:WAB) worth $2.98 billion the previous quarter.
Wells Fargo analyst Allison Poliniak-Cusic boosted his price objective on Westinghouse Air Brake Technologies Corporation (NYSE:WAB) to $110 from $105 on January 10 and maintained an Overweight rating on the stock. According to the expert, Westinghouse Air Brake Technologies Corporation (NYSE:WAB) was in the most outstanding position to benefit from rising technology investments.
The hedge fund of Munir Javeri entered the fourth quarter of 2021 with 2.12 million shares of Westinghouse Air Brake Technologies Corporation (NYSE:WAB) in its portfolio worth around $195.50 million. The company has featured on Javeri’s portfolio since the first quarter of 2020.
TGV Intrinsic Fund mentioned Westinghouse Air Brake Technologies Corporation (NYSE:WAB) in its Q2 2021 investor letter: Here is what the fund said:
“The second change concerns the American railway supplier Westinghouse Air Brake Technologies (Wabtec). Wabtec took over the railway division from General Electric (GE) in 2019. As part of this, Rafael Santana – who had come over from GE – became the new CEO of Wabtec. The previous CEO, Ray Betler, is one of the best corporate leaders I know, and I particularly appreciated the decentralized corporate culture he embodied. The operating figures have developed nicely since 2019 under Rafael Santana. However, from conversations with current and former employees of Wabtec, it is becoming increasingly clear to me that the GE culture, which is designed to achieve short-term corporate goals, is establishing itself within the company. This culture is not necessarily bad – but it is a culture that does not fit the long-term orientation of the TGV Intrinsic.
Accordingly, I recommended the sale of all Wabtec shares despite the decent operational development. Wabtec is a good example of a distinction between “process” and “result”. In the long run, the right process typically leads to a good result and the wrong process to a bad one. In the short term, however, even a wrong process can lead to a good result. Considered by itself, Wabtec’s financial development since 2019 (result) is not sufficient to make an investment recommendation for the future. Changes in the corporate culture (process) often only become noticeable in the financial figures after several years and are therefore a more meaningful indicator of long-term operational development than short-term historical business development. Accordingly, my discussions with current and former Wabtec employees about changes in the corporate culture are the crucial reason for the sell recommendation, as I assume that the GE culture will lead to worse operating results in the long term.”
You can also take a peek at 9 Stocks to Invest In According to Joshua Kushner’s Thrive Capital and Top 10 Stock Picks of Kenneth A. Moffet’s Hourglass Capital.
