Bonhoeffer Capital Management, an asset management company, released its fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. Bonhoeffer Fund shifted slower-growing companies, throughout 2023 to robust, growing companies in temporary down-turning industries. In the current year, the fund is still looking for chances of this nature. The fund returned 12.9% net of fees in the fourth quarter of 2023 and 17.0% for 2023 overall. The MSCI World ex-US, a broad-based index, returned 9.8%, and the DFA International Small Cap Value Fund, the closest benchmark, returned 9.3% during the same period. The fund’s portfolio holds the highest-quality businesses in the fund’s history. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Bonhoeffer Capital Management featured stocks such as Arrow Electronics, Inc. (NYSE:ARW) in the fourth quarter 2023 investor letter. Headquartered in Centennial, Colorado, Arrow Electronics, Inc. (NYSE:ARW) offers products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions. On February 14, 2024, Arrow Electronics, Inc. (NYSE:ARW) stock closed at $112.19 per share. One-month return of Arrow Electronics, Inc. (NYSE:ARW) was -3.74%, and its shares lost 9.28% of their value over the last 52 weeks. Arrow Electronics, Inc. (NYSE:ARW) has a market capitalization of $6.037 billion.
Bonhoeffer Capital Management stated the following regarding Arrow Electronics, Inc. (NYSE:ARW) in its fourth quarter 2023 investor letter:
“A key performance indicator (“KPI”) for distribution types of businesses is return on working capital. If we look at electronics distribution, we see a clear leader in return on working capital of 30% in Arrow Electronics, Inc. (NYSE:ARW) versus Avnet, Inc. (“Avnet”), Arrow’s closest competitor, at 12%. Arrow and Avnet are the two largest electronics distributors in the world. Another way for distributors to add value is to provide services in addition to distributing the product itself. Again, in Arrow’s case they provide design services for their suppliers based upon customer’s needs and outsourced supply chain management services. This allows Arrow to generate higher net income margins than Avnet of 3.9% vs. 2.9%, respectively. These advantages also show up in the 10-year EPS growth rates (13% per year for Arrow versus 7% per year for Avnet) and returns on net working capital and invested capital.”
A close-up view of a technician soldering a circuit board in an electronics manufacturing facility.
Arrow Electronics, Inc. (NYSE:ARW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Arrow Electronics, Inc. (NYSE:ARW) at the end of third quarter which was 27 in the previous quarter.
We discussed Arrow Electronics, Inc. (NYSE:ARW) in another article and shared the list of best affordable technology stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.
