Immersion Investment Partners, an investment management company, released its second quarter 2023 investor letter. A copy of the same can be downloaded here. The fund returned 22.3% in the second quarter compared to 5.21% for the Russell 2000 Index. The firm is happy with its broad-based year-to-date performance. The fund returned 29.73% year-to-date compared to 8.09% for the benchmark. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Immersion Investment Partners highlighted stocks like Motorcar Parts of America, Inc. (NASDAQ:MPAA) in the second quarter 2023 investor letter. Headquartered in Torrance, California, Motorcar Parts of America, Inc. (NASDAQ:MPAA) manufactures, remanufactures, and distributes automotive parts. On August 4, 2023, Motorcar Parts of America, Inc. (NASDAQ:MPAA) stock closed at $9.35 per share. One-month return of Motorcar Parts of America, Inc. (NASDAQ:MPAA) was 18.35%, and its shares lost 35.25% of their value over the last 52 weeks. Motorcar Parts of America, Inc. (NASDAQ:MPAA) has a market capitalization of $182.275 million.
Immersion Investment Partners made the following comment about Motorcar Parts of America, Inc. (NASDAQ:MPAA) in its second quarter 2023 investor letter:
“At the time of this writing (July 2023), we hold positions in nineteen businesses ranging in market capitalization from $40 million to $11 billion and a median size of $600 million. In this update, we will introduce a new holding – Motorcar Parts of America, Inc. (NASDAQ:MPAA) (MPAA – Social Pariah) and give updates on several disclosed positions.
Motorcar Parts of America is a leading manufacturer of aftermarket auto parts. They are the largest supplier of aftermarket starters and alternators in the U.S., with a 50% market share. They also have decent market share in power boosters, wheel hubs, and brake calipers. They sell primarily to the major aftermarket retailers – Advance Auto Parts, Autozone, O’Reilly, and Napa (GPC). Their largest three customers make up ~85% of sales. They have a deep manufacturing, quality control, and logistics network employing >6,000 people, with factories in Mexico, Canada, Malaysia, California, and India.
From a 30,000-foot level, MPAA benefits from an aging automotive fleet, which requires more replacement parts. While an aging auto fleet in the U.S. and growth in miles driven helps MPAA, it’s not a necessary factor for this investment to work. This is a reversion-to-the-mean setup, as described below…” (Click here to read the full text)
Copyright: microolga / 123RF Stock Photo
Motorcar Parts of America, Inc. (NASDAQ:MPAA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Motorcar Parts of America, Inc. (NASDAQ:MPAA) at the end of first quarter which was 7 in the previous quarter.
We discussed Motorcar Parts of America, Inc. (NASDAQ:MPAA) in another article and shared Cove Street Capital’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.
