Silver Ring Value Partners, an investment management company, released its first quarter 2024 investor letter. A copy of the letter can be downloaded here. The strategy returned -23.5% (net) in the last 12 months compared to a 29.3% return for the Russell 3000 Index and 25.7% for the MSCI World Index during the same period. You can check the top 5 holdings of the fund to know its best picks in 2024.
Silver Ring Value Partners featured stocks like PHINIA Inc. (NYSE:PHIN) in the first quarter 2024 investor letter. Headquartered in Auburn Hills, Michigan, PHINIA Inc. (NYSE:PHIN), a spin-off from BorgWarner (BWA), develops, designs, and manufactures integrated components and systems for commercial and light vehicles, and industrial applications to optimize performance, increase efficiency, and reduce emissions. On May 17, 2024, PHINIA Inc. (NYSE:PHIN) stock closed at $44.98 per share. One-month return of PHINIA Inc. (NYSE:PHIN) was 16.26%, and YTD its shares gained 48.50% of their value. PHINIA Inc. (NYSE:PHIN) has a market capitalization of $2.055 billion.
Silver Ring Value Partners stated the following regarding PHINIA Inc. (NYSE:PHIN) in its first quarter 2024 investor letter:
“PHINIA Inc. (NYSE:PHIN) was a spin-off from BorgWarner (BWA) and consists of that company’s fuel systems and after-market businesses. What attracted me to do further work was the language that management used on their calls. For example, here is what the CEO said on a recent call about executive compensation:
“… we are managing the business with a laser focus on generating economic value, or EV, and free cash flow. The 2024 annual cash incentive will be based on the company’s achievement of two equally weighted performance metrics; EV and free cash flow. This program sends a clear message throughout our organization that investment decisions are made through the lens of earning an adequate return on capital. Our 2024 long-term equity incentive will be solely based on the company’s relative total shareholder returns compared to that of a peer group company.”
Early in my career I used to think that incentives at public companies primarily serve to drive behavior. While that might still be true to a degree, my experience has led me to believe that they primarily reflect management’s values and integrity. In theory the Board is independent and sets incentives. In practice, often-times it’s the CEO who chooses how he or she will get compensated with a rubber stamp from the usual compensation consultants and the Board. ..”(Click here to read the full text)
Workers assembling a state-of-the-art engine in a modern auto factory.
PHINIA Inc. (NYSE:PHIN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held PHINIA Inc. (NYSE:PHIN) at the end of the fourth quarter which was 27 in the previous quarter.
In another article, we discussed PHINIA Inc. (NYSE:PHIN) and shared the list of recent spin-off companies that hedge funds are piling into. In addition, please check out our hedge fund investor letters Q1 2024 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.
