Atai Capital, an investment management firm, recently released its third-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund declined by 5.8% in the third quarter which brought year-to-date (YTD) returns to 6.5% net of all fees, compared to a 13.1% total return for the S&P 500 YTD and a 2.5% total return for the Russell 2000 YTD. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Atai Capital highlighted stocks like Bel Fuse Inc. (NASDAQ:BELFB) in the third quarter 2023 investor letter. Headquartered in Jersey City, New Jersey, Bel Fuse Inc. (NASDAQ:BELFB) engages in the design, manufacturing, and marketing of products used to power, protect, and connect electronic circuits. On November 29, 2023, Bel Fuse Inc. (NASDAQ:BELFB) stock closed at $54.31 per share. One-month return of Bel Fuse Inc. (NASDAQ:BELFB) was -1.11%, and its shares gained 57.69% of their value over the last 52 weeks. Bel Fuse Inc. (NASDAQ:BELFB) has a market capitalization of $694.071 million.
Atai Capital made the following comment about Bel Fuse Inc. (NASDAQ:BELFB) in its Q3 2023 investor letter:
“Since I just spent some time explaining how I think about risk and volatility, I wanted to provide you with a real-world example of why price fluctuations should be ignored; luckily, one of our portfolio companies makes for a perfect example. Below, you’ll find a year-to-date chart of Bel Fuse Inc. (NASDAQ:BELFB), and since the start of the year, Bel’s share price has experienced a 100%+ increase from trough to peak and two declines that were more than 30%. I would argue that Bel Fuse’s fair value is far above today’s share price, and the two 30% declines don’t represent Bel Fuse’s fair value declining or its risk increasing. Nevertheless, Bel’s shares apparently like to sell off materially heading into most of its earnings; these declines are on the back of what I can only assume are very negative expectations from the market, but as you’ll see in the chart, once Bel Fuse reports the share price quickly corrects as negative expectations are proven wrong time and time again, and the magnet that is intrinsic value continually pulls Bel’s share price higher over time.
If we had fallen victim to share price volatility and tried to discern risk from it, we might have made the poor decision of selling Bel Fuse as it declined, but instead, we did the opposite, and every time it traded down, we bought more. Usually, when a stock starts selling off on no news, you’ll see other investors saying things like “someone knows something,” or they’ll be frantically searching for a reason for the selloff. The truth is a lot of the time, there isn’t a reason, or the reason is extraneous. During those times, it’s essential to take a step back and remember there is a business attached to every share, and as long as the fundamentals are intact, we should have no problem telling the market it’s wrong by purchasing more shares at a discount.”
A close up view of mmWave Integrated Circuits with a technician pointing out the intricate components.
Bel Fuse Inc. (NASDAQ:BELFB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Bel Fuse Inc. (NASDAQ:BELFB) at the end of third quarter which was 16 in the previous quarter.
We discussed Bel Fuse Inc. (NASDAQ:BELFB) in another article and shared Immersion Investment Partners’ views on the company. 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:
- 12 Best Quality Stocks To Buy Now
- 25 States With Highest Tourism Revenue in the US
- 20 States with the Highest Rates of Smoking in America
Disclosure: None. This article is originally published at Insider Monkey.
