Is it Still Worth Investing in TransDigm Group (TDG)?

Vulcan Value Partners, an investment management firm, published its second-quarter 2022 investor letter – a copy of which can be downloaded here. All five of the fund’s strategies trailed their respective benchmarks during the quarter. The good news is that across its portfolios most of its companies are performing well fundamentally. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Vulcan Value Partners mentioned TransDigm Group Incorporated (NYSE:TDG) and explained its insights for the company. Founded in 1993, TransDigm Group Incorporated (NYSE:TDG) is a Cleveland, Ohio-based aerospace and defense company with a $34.2 billion market capitalization. TransDigm Group Incorporated (NYSE:TDG) delivered a -0.83% return since the beginning of the year, while its 12-month returns are up by 3.66%. The stock closed at $631.02 per share on August 26, 2022.

Here is what Vulcan Value Partners has to say about TransDigm Group Incorporated (NYSE:TDG) in its Q2 2022 investor letter:

“TransDigm Group Inc. is an aerospace manufacturing firm that provides highly engineered, niche components for use on commercial and military aircraft. The vast majority of the company’s profits come from aftermarket sales of sole-sourced products. The company produces high levels of free cash flow and has an effective, shareholder-oriented management team who are good capital allocators. Despite the company’s strong results during the quarter and solid outlook, its stock price declined.”

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Our calculations show that TransDigm Group Incorporated (NYSE:TDG) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. TransDigm Group Incorporated (NYSE:TDG) was in 66 hedge fund portfolios at the end of the second quarter of 2022, compared to 64 funds in the previous quarter. TransDigm Group Incorporated (NYSE:TDG) delivered a 3.06% return in the past 3 months.

In August 2021, we also shared another hedge fund’s views on TransDigm Group Incorporated (NYSE:TDG) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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