Here’s Why Miller Howard Investments Exited its Magna (MGA) Position

Miller Howard Investments, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly return of 3.5% (yield) was recorded by the fund for the third quarter of 2021, compared to the 1.5% for the S&P 500 for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Miller Howard Investments, in its Q3 2021 investor letter, mentioned Magna International Inc. (NYSE: MGA) and discussed its stance on the firm. Magna International Inc. is an Aurora, Canada-based mobility technology company with a $24.0 billion market capitalization. MGA delivered a 12.77% return since the beginning of the year, while its 12-month returns are up by 11.07%. The stock closed at $79.84 per share on December 29, 2021.

Here is what Miller Howard Investments has to say about Magna International Inc.  in its Q3 2021 investor letter:

“We sold Magna (MGA) following their planned announcement of the acquisition of Veoneer (VNE). We viewed the proposed deal as a poor use of capital and likely to slow Magna’s share repurchases and dividend increases going forward. (Veoneer later terminated the deal with Magna in favor of a better offer.)”

Based on our calculations, Magna International Inc. (NYSE: MGA) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. MGA was in 29 hedge fund portfolios at the end of the third quarter of 2021, compared to 39 funds in the previous quarter. Magna International Inc. (NYSE: MGA) delivered a 4.27% return in the past 3 months.

Earlier this month, we published an article that includes MGA in the 5 Most Popular EV Stocks Among Famous Hedge Funds. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

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