5 Value Stocks in Seth Klarman’s Latest Portfolio

2. Garrett Motion Inc. (NASDAQ:GTX)

Number of Hedge Fund Holders: 19  

PE Ratio: 4.12   

Garrett Motion Inc. (NASDAQ:GTX) makes and sells auto parts and equipment. Securities filings reveal that Baupost Group owned over 25.4 million shares of the company at the end of December 2021 worth $213 million, representing 2.1% of the portfolio. 

Major hedge funds hold large stakes in Garrett Motion Inc. (NASDAQ:GTX). Among the hedge funds being tracked by Insider Monkey, California-based investment firm Oaktree Capital Management is a leading shareholder in Garrett Motion Inc. (NASDAQ:GTX), with 68 million shares worth more than $576 million.  

In its Q4 2021 investor letter, Alluvial Capital Management, an asset management firm, highlighted a few stocks and Garrett Motion Inc. (NASDAQ:GTX) was one of them. Here is what the fund said:

“Garrett Motion Inc. (NASDAQ:GTX) is also feeling the effects of the troubles with global supply chains. Difficulties in sourcing semiconductors have led many large automotive manufacturers to slow production, which in turn delays orders for Garrett Motion’s turbochargers. Still, the environment has not prevented Garrett Motion from making progress on improving its balance sheet and beginning to return capital. In November, the company announced a plan to repurchase $100 million in common and preferred stock. Then in December, Garrett Motion Inc. (NASDAQ:GTX) announced it would accelerate the planned redemption of its Series B preferred stock held by Honeywell. By this time next year, Garrett Motion will have meaningfully reduced its liabilities and bought in quite a bit of stock at a very attractive price. As supply chains normalize, the company’s earnings and cash flow will benefit, giving Garrett Motion Inc. (NASDAQ:GTX) the ability to return more capital to shareholders and invest in the transition to products for electric vehicles.”