Bonhoeffer Capital Management, an asset management company, released its fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. Bonhoeffer Fund shifted slower-growing companies, throughout 2023 to robust, growing companies in temporary down-turning industries. In the current year, the fund is still looking for chances of this nature. The fund returned 12.9% net of fees in the fourth quarter of 2023 and 17.0% for 2023 overall. The MSCI World ex-US, a broad-based index, returned 9.8%, and the DFA International Small Cap Value Fund, the closest benchmark, returned 9.3% during the same period. The fund’s portfolio holds the highest-quality businesses in the fund’s history. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Bonhoeffer Capital Management featured stocks such as Avnet, Inc. (NASDAQ:AVT) in the fourth quarter 2023 investor letter. Headquartered in Phoenix, Arizona, Avnet, Inc. (NASDAQ:AVT) distributes electronic component technology. On February 14, 2024, Avnet, Inc. (NASDAQ:AVT) stock closed at $45.08 per share. One-month return of Avnet, Inc. (NASDAQ:AVT) was -4.53%, and its shares lost 2.91% of their value over the last 52 weeks. Avnet, Inc. (NASDAQ:AVT) has a market capitalization of $4.074 billion.
Bonhoeffer Capital Management stated the following regarding Avnet, Inc. (NASDAQ:AVT) in its fourth quarter 2023 investor letter:
“A key performance indicator (“KPI”) for distribution types of businesses is return on working capital. If we look at electronics distribution, we see a clear leader in return on working capital of 30% in Arrow Electronics (“Arrow”) versus Avnet, Inc. (NASDAQ:AVT), Arrow’s closest competitor, at 12%. Arrow and Avnet are the two largest electronics distributors in the world. Another way for distributors to add value is to provide services in addition to distributing the product itself. Again, in Arrow’s case they provide design services for their suppliers based upon customer’s needs and outsourced supply chain management services. This allows Arrow to generate higher net income margins than Avnet of 3.9% vs. 2.9%, respectively. These advantages also show up in the 10-year EPS growth rates (13% per year for Arrow versus 7% per year for Avnet) and returns on net working capital and invested capital.”
An assembly line of specialists in goggles and face masks building electronic components.
Avnet, Inc. (NASDAQ:AVT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Avnet, Inc. (NASDAQ:AVT) at the end of third quarter which was 31 in the previous quarter.
We discussed Avnet, Inc. (NASDAQ:AVT) in another article and shared the list of best affordable technology stocks to buy. 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.
