Fiduciary Management Inc. (FMI), an independent money management firm, released its fourth quarter 2023 investor letter. A copy of the same can be downloaded here. Global stock markets had a strong year in 2023, with robust consumer demand, tight labor markets, and declining inflation all contributing to the positive outlook. The Small Cap Strategy rose 12.4% (gross) / 12.2% (net) in the quarter compared to 14.03% and 15.26% for the Russell 2000 Index and Russell 2000 Value Index. FMI Large Cap Strategy gained 13.1% (gross) / 13.0% (net) compared with 11.69% and 9.50% for the S&P 500 and iShares Russell 1000 Value ETF, respectively. The FMI All Cap Equity advanced 11.4% (gross) / 11.2% (net), compared with 12.14% for the iShares Russell 3000 ETF. Finally, the FMI International Strategies gained 6.4% (gross) / 6.2% (net) on a currency-hedged basis and 9.6% (gross) / 9.4% (net) on a currency-unhedged basis. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Fiduciary Management featured stocks such as Carrier Global Corporation (NYSE:CARR) in the fourth quarter 2023 investor letter. Headquartered in Palm Beach Gardens, Florida, Carrier Global Corporation (NYSE:CARR) offers heating, ventilating, and air conditioning (HVAC), refrigeration, fire, security, and building automation technologies. On January 10, 2024, Carrier Global Corporation (NYSE:CARR) stock closed at $57.04 per share. One-month return of Carrier Global Corporation (NYSE:CARR) was -3.01%, and its shares gained 26.06% of their value over the last 52 weeks. Carrier Global Corporation (NYSE:CARR) has a market capitalization of $48.752 billion.
Fiduciary Management stated the following regarding Carrier Global Corporation (NYSE:CARR) in its fourth quarter 2023 investor letter:
“As part of United Technologies, we believe Carrier Global Corporation (NYSE:CARR) suffered from undermanagement. Despite that, the business still grew consistently in the low single digits and was nicely profitable due to an oligopolistic industry and Carrier’s strong competitive position. However, the cost structure was not optimized and they were not investing in long-term growth. Now that Carrier has over three years as a standalone company, we believe the company’s operations are increasingly on its front foot. CEO Dave Gitlin, who came from United Technologies’ crown jewel aerospace business, has been instrumental in these efforts. On top of that, through a series of ongoing divestitures and the acquisition of a European heat pump manufacturer, Carrier is well on its way to becoming a pureplay heating, ventilation, and air conditioning business with higher returns on capital and faster organic growth. After rerating significantly coming out of COVID, Carrier’s shares lost momentum due to perceptions of choppy execution, COVID normalization, and future recessionary fears. Although these risks may come to pass, a modest starting valuation and good industry structure gave us confidence that our downside was relatively protected. If Carrier can execute on growth, costs, and the portfolio transformation, we believe there is significant upside.”
An engineer inspecting a HVAC system, revealing the complexity of the products.
Carrier Global Corporation (NYSE:CARR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Carrier Global Corporation (NYSE:CARR) at the end of third quarter which was 34 in the previous quarter.
We discussed Carrier Global Corporation (NYSE:CARR) in another article and shared the list of stocks Jim Cramer and hedge funds have in common. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
