Ariel Investments, an investment management company, released its “Ariel Global Strategy” fourth-quarter investor letter. A copy of the same can be downloaded here. In the fourth quarter, the Ariel Global Composite delivered a 10.72% gross of fees compared to a +9.76% return for the primary MSCI ACWI Index and a +14.21% gain for the MSCI ACWI Value Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Ariel Global Strategy highlighted stocks like Philip Morris International Inc. (NYSE:PM) in the Q4 2022 investor letter. Headquartered in Stamford, Connecticut, Philip Morris International Inc. (NYSE:PM) is a tobacco company. On March 15, 2023, Philip Morris International Inc. (NYSE:PM) stock closed at $96.18 per share. One-month return of Philip Morris International Inc. (NYSE:PM) was -4.11%, and its shares gained 3.05% of their value over the last 52 weeks. Philip Morris International Inc. (NYSE:PM) has a market capitalization of $150.915 billion.
Ariel Global Strategy made the following comment about Philip Morris International Inc. (NYSE:PM) in its Q4 2022 investor letter:
“Shares of tobacco maker, Philip Morris International Inc. (NYSE:PM) also traded higher in the period. The company delivered strong earnings, however subsequently lowered its full year outlook as Fx headwinds, supply-chain disruptions resulting from the war in Ukraine and global inflationary pressures continue to weigh on earnings. Additionally, management announced an agreement to terminate its U.S. business relationship with fellow tobacco producer, Altria Group effective April 30, 2024, highlighting terms to PM’s exclusive right to sell IQOS heated tobacco products in the region thereafter. Also in the quarter, PM completed its acquisition of smokeless tobacco company Swedish Match (SWMA). Synergies include an extension of global positioning, distribution infrastructure in the large and attractive U.S. market, as well as a broader opportunity set, including SWMA’s oral nicotine portfolio for reduced-risk products. In our view, the favorable economics and margin expansion associated with market share gains from IQOS and Reduced Risk Products should yield value creation opportunities in the years ahead. Furthermore, at current trading levels, we believe the company’s operating leverage, pricing power, and improving free cash flow profile offer a strong margin of safety.”
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Philip Morris International Inc. (NYSE:PM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Philip Morris International Inc. (NYSE:PM) at the end of the fourth quarter which was 63 in the previous quarter.
We discussed Philip Morris International Inc. (NYSE:PM) in another article and shared the list of best consumer staple stocks to buy. In addition, please check out our hedge fund investor letters Q4 2022 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.
