Horizon Kinetics LLC, an investment management company, released its fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The letter discussed global macroeconomic landscape and a comprehensive discussion about plans. You can check the fund’s top 5 holdings to know more about its best picks for 2023.
Horizon Kinetics featured stocks like Archer-Daniels-Midland Company (NYSE:ADM) in its Q4 2023 investor letter. Headquartered in Chicago, Illinois, Archer-Daniels-Midland Company (NYSE:ADM) is an agricultural commodities processor. On February 23, 2024, Archer-Daniels-Midland Company (NYSE:ADM) stock closed at $53.45 per share. One-month return of Archer-Daniels-Midland Company (NYSE:ADM) was -2.71%, and its shares lost 34.17% of their value over the last 52 weeks. Archer-Daniels-Midland Company (NYSE:ADM) has a market capitalization of $28.509 billion.
Horizon Kinetics stated the following regarding Archer-Daniels-Midland Company (NYSE:ADM) in its fourth quarter 2023 investor letter:
“There are the securities exchanges in our strategies, of course, which we’ve adequately covered. Also, ‘2nd tier’ varieties of asset-light businesses, like car dealerships (AutoNation and Penske Auto Group) and shipping brokers (Clarkson PLC and Braemar PLC). Less well reviewed have been a few companies that are asset intensive, but have particular inflation-beneficiary attributes.
One such is Archer-Daniels-Midland Company (NYSE:ADM), one of the largest agricultural commodities processors. They turn grains and legumes into flour, protein meals, oils, starches, syrups, cellulose pulp, what have you. Almost everything on a dinner plate came through, in some fashion, ADM’s hands. Yes, they have machinery, terminals, ships, railroad cars. And as an intermediary, theirs is a low-margin business. But it is a constant-spread business that earns a pretty stable margin on a very large sales base. When pricing rises for a period of time, that percentage spread is on a higher dollar amount, hence more dollars of income—so income can rise nicely when agricultural commodities do. And there is the opportunity to expand their margins somewhat…” (Click here to read the full text)
A wheat field at sunset, showing the company’s commitment to agricultural commodities.
Archer-Daniels-Midland Company (NYSE:ADM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Archer-Daniels-Midland Company (NYSE:ADM) was held by 34 hedge fund portfolios, down from 37 in the previous quarter, according to our database.
We discussed Archer-Daniels-Midland Company (NYSE:ADM) in another article and shared the list of best income stocks to buy according to analysts. 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.
