Is Magnachip Semiconductor Corp. (MX) Still a Worthy Investment?

Altron Capital Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The S&P500 had a return of 11.0% in the fourth quarter, bringing the total return for 2021 to 28.7%. The firm’s portfolios have underperformed this quarter, but are taking this opportunity to buy more into some of its current positions. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Altron Capital Management, in its Q4 2021 investor letter, mentioned Magnachip Semiconductor Corporation (NYSE:MX) and discussed its stance on the firm. Founded in 2004, Magnachip Semiconductor Corporation (NYSE:MX) is a Cheongju-si, South Korea-based semiconductor manufacturing company with a $709.7 million market capitalization, and is currently spearheaded by its CEO, Young-Joon Kim. Magnachip Semiconductor Corporation (NYSE:MX) delivered a -24.61% return since the beginning of the year, while its 12-month returns are down by -37.49%. The stock closed at $15.81 per share on April 08, 2022.

Here is what Altron Capital Management has to say about Magnachip Semiconductor Corporation (NYSE:MX) in its Q4 2021 investor letter:

“MagnaChip Semiconductor Corp. (NYSE:MX). While the previous buyout offer from Wise Road Capital did not go through as many expected, the company is still in talks with other potential buyers. Furthermore, the company announced a USD 75 million share buyback, which represents a significant percentage of the company’s shares. While we do not generally enter positions with the anticipation of a buyout, it is the case that a MagnaChip acquisition will be the most likely outcome.”

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Our calculations show that Magnachip Semiconductor Corporation (NYSE:MX) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Magnachip Semiconductor Corporation (NYSE:MX) was in 33 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 35 funds in the previous quarter. Magnachip Semiconductor Corporation (NYSE:MX) delivered a -11.03% return in the past 3 months.

In May 2021, we also shared another hedge fund’s views on Magnachip Semiconductor Corporation (NYSE:MX) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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