Here’s Why Allied Motion Technologies (AMOT) Performed Well During the Pandemic

Argosy Investors, an investment management company, recently released its second-quarter 2022 investor letter. A copy of the same can be downloaded here. Year to date, the fund returned -25.4% in select accounts compared to -20% for the S&P 500. The main reason for the fund’s underperformance was the poor performance of its most significant holdings. For more information on the fund’s top picks in 2022, please check its top five holdings.

Argosy Investors discussed stocks like Allied Motion Technologies Inc. (NASDAQ:AMOT). Headquartered in Amherst, New York, Allied Motion Technologies Inc. (NASDAQ:AMOT) is engaged in the business of precision and specialty controlled motion components. The stock of Allied Motion Technologies Inc. (NASDAQ:AMOT) closed at $37.34 per share on August 18, 2022. In one month, the stock returned 45.75% and its shares gained 18.31% of their value over the last 52 weeks. Allied Motion Technologies Inc. (NASDAQ:AMOT) has a market capitalization of $596.63 million.

Here is what Argosy Investors specifically said about Allied Motion Technologies Inc. (NASDAQ:AMOT):

“Allied Motion Technologies Inc. (NASDAQ:AMOT) also appears in the 2Q “Dogs of Argosy Investors” list. Dick Warzala is the CEO of this business and Dick has decades of experience in the precision motion industry, having sold his motion control business to well-known conglomerate Danaher for $250 million in 2000. Dick has revived Allied Motion’s fortunes in the last 20 years by selling off underperforming divisions and then building through acquisition and the application of Lean management. AMOT has been very active in the last few months, acquiring three companies in about 60 days. I believe AMOT will provide attractive returns as Warzala manages these businesses to provide integrated solutions that provide higher value to customers. There has been significant noise in their cash flows despite strong revenue growth throughout the pandemic, and I believe 2023 may reflect $2+ per share of cash flows, which would imply the stock is trading at ~16x 2023 cash flows today.”

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Allied Motion Technologies Inc. (NASDAQ:AMOT) is not on the list of  30 Most Popular Stocks Among Hedge Funds. As per our database, Allied Motion Technologies Inc. (NASDAQ:AMOT) was held by 9 hedge fund portfolios at the end of the first quarter, which was 9 in the previous quarter.

We discussed Allied Motion Technologies Inc. (NASDAQ:AMOT) in another article and shared the list of stocks with growth potential according to Juniper Investment Company. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

Disclosure: None. This article is originally published at Insider Monkey.