Aristotle Capital Management, LLC, an investment management company, released its “International Equity Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. Aristotle Capital International Equity returned -0.85% gross of fees (-0.96% net of fees) in the second quarter lagging behind the MSCI EAFE Index’s -0.42% return, and the MSCI ACWI ex USA Index’s 0.96% return. Both allocation effects and security selection led the portfolio to relatively underperform the MSCI EAFE Index from a sector perspective. Regionally security selection drove the underperformance, while allocation effects had a positive impact. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Aristotle Capital International Equity Strategy highlighted stocks like Magna International Inc. (NYSE:MGA), in the second quarter 2024 investor letter. Magna International Inc. (NYSE:MGA) designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles. The one-month return of Magna International Inc. (NYSE:MGA) was 4.96%, and its shares lost 26.77% of their value over the last 52 weeks. On July 15, 2024, Magna International Inc. (NYSE:MGA) stock closed at $44.45 per share with a market capitalization of $36.387 billion.
Aristotle Capital International Equity Strategy stated the following regarding Magna International Inc. (NYSE:MGA) in its Q2 2024 investor letter:
“Magna International Inc. (NYSE:MGA), a Canada‐based global auto parts, systems and assembly company, was one of the largest detractors for the period. The company lowered its 2024 sales guidance, having seen a slowdown in electric vehicle (EV) adoption across its customer base and expecting a halt in Fisker Ocean production. Despite concerns over automakers delaying EV rollouts, we continue to believe in the longer-term investment catalysts for Magna. These include the company’s ability to enhance margins from operational improvements and leverage its distinctive capabilities to supply parts for an increasingly electrified and autonomous fleet of vehicles. Magna specializes in lightweighting—a necessity for heavy internal combustion engines and electric vehicles—and has made years of investments in self-driving technologies. In addition, with leading market share positions in many of its core markets and products, we believe Magna remains well positioned to benefit as content‐per‐ vehicle increases and automotive parts and systems become more complex.”
An assembly line of light trucks in a state-of-the-art manufacturing plant.
Magna International Inc. (NYSE:MGA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Magna International Inc. (NYSE:MGA) at the end of the first quarter which was 13 in the previous quarter. Consolidated sales of Magna International Inc. (NYSE:MGA) in the first quarter were $11 billion, up 3% year over year. While we acknowledge the potential of Magna International Inc. (NYSE:MGA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
