Bonsai Partners, an investment management company, released its Q3 2023 Investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined -2.8% net of fees and expenses. During this period the S&P 500 Total Return Index declined by -3.3%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Bonsai Partners highlighted stocks like Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q3 2023 investor letter. Headquartered in Hsinchu City, Taiwan, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures, packages, tests, and sells integrated circuits and other semiconductor devices. On January 3, 2024, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock closed at $100.17 per share. One-month return of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was 0.89%, and its shares gained 32.27% of their value over the last 52 weeks. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has a market capitalization of $519.523 billion.
In its third quarter 2023 investor letter, Bonsai Partners stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM):
“Robustness at the product level exists differently than in other layers of the value chain. Product diversification follows the same principle, but product control isn’t related to vertical integration. Product control exists in multiple forms, such as switching costs or happy customers who don’t want to buy elsewhere. However, one often overlooked dimension of product-level robustness is adaptability. Some businesses offer goods and services that behave like shapeshifters; they naturally adapt to the market’s needs regardless of how the world changes. Adaptability also serves as a hedge against the unknown.
Consider our investment in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), which enjoys a highly adaptive product portfolio. If we compare TSMC to a fabless chip maker like Qualcomm, investing in Qualcomm is a bet that its products will retain their technological advantage over time. Meanwhile, TSMC sells a service that naturally produces whatever the end customer wants. There is little need for brilliant product-level foresight; TSMC just needs to maintain its process and service level advantages, allowing it to manufacture whatever the market demands. TSMC’s product portfolio is robust compared to most other semiconductor companies because it naturally adapts to technological and market-driven shifts. Instead of product-level risk, TSMC’s core risks are geopolitical.”
A close-up of a complex network of integrated circuits used in logic semiconductors.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is in 19th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 107 hedge fund portfolios held Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at the end of third quarter which was 121 in the previous quarter.
We discussed Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in another article and shared the list of most profitable large cap stocks to buy. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 15 Richest Countries that Pay You to Move There
- IMF’s GDP Forecast of 2030 GDP by Country
- 10 Supplements for Longevity and Antiaging: Expert Recommendations
Disclosure: None. This article is originally published at Insider Monkey.
