Is MACOM Technology (MTSI) a Smart Long-Term Buy?

Aristotle Capital Management, an independent/employee-owned investment management organization, published its “Aristotle Small Cap Equity Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. For the first quarter of 2022, the Aristotle Small Cap Equity Composite generated a total return of -5.77% gross of fees (-5.92% net of fees), outperforming the -7.53% total return of the Russell 2000 Index. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Aristotle Capital Management Small Cap Equity mentioned MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) and explained its insights for the company. Founded in 1950, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is a Lowell, Massachusetts-based semiconductor products manufacturer with a $3.6 billion market capitalization. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) delivered a -32.75% return since the beginning of the year, while its 12-month returns are down by -10.81%. The stock closed at $52.66 per share on May 26, 2022.

Here is what Aristotle Capital Management Small Cap Equity has to say about MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) in its Q1 2022 investor letter:

“MACOM Technology Solutions (NASDAQ:MTSI), a designer and manufacturer of high-performance semiconductors, declined in the face of industry-wide supply chain issues. Nevertheless, the company’s fundamentals continue to advance, as we believe the company’s meaningful exposure to growing demand from Data Center and 5G end market applications plus solid company-specific execution has driven faster-than-expected profitability. We believe the underlying demand drivers are sustainable for the foreseeable future and continue to maintain our position.”

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Our calculations show that MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) was in 21 hedge fund portfolios at the end of the first quarter of 2022, compared to 20 funds in the previous quarter. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) delivered a -12.06% return in the past 3 months. You can find other investor letters from hedge funds and prominent in\vestors on our hedge fund investor letters 2022 Q1 page.

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