Artisan Partners, an investment management firm, published its “Artisan Global Value Fund” second-quarter 2022 investor letter – a copy of which can be downloaded here. A return of -13.40% was recorded by its Investor Class: ARTGX, -13.32% by its Advisor Class: APDGX, and -13.33% by its Institutional Class: APHGX, in the second quarter of 2022, outperforming its MSCI All Country World benchmark that delivered a -15.66% return in the same period. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, Artisan Global Value Fund mentioned Sensata Technologies Holding plc (NYSE:ST) and explained its insights for the company. Founded in 1916, Sensata Technologies Holding plc (NYSE:ST) is an Attleboro, Massachusetts-based industrial technology company with a $6.9 billion market capitalization. Sensata Technologies Holding plc (NYSE:ST) delivered a -27.90% return since the beginning of the year, while its 12-month returns are down by -23.46%. The stock closed at $44.48 per share on July 28, 2022.
Here is what Artisan Global Value Fund has to say about Sensata Technologies Holding plc (NYSE:ST) in its Q2 2022 investor letter:
“Sensata is a manufacturer of sensors and electrical components used in automotive, heavy vehicle, HVAC, appliance, aerospace and other industrial markets. Automotive is the largest end market at about 60% of its revenue. The business has a few important characteristics. Sensata’s products are IP-driven and mission critical, but represent only a fraction of its customers’ total bill of materials. Once it wins a design, its products are integrated into customers’ systems after significant R&D, testing and certification by the customers. This creates high switching costs and a powerful incumbency advantage. Sensata is typically the sole source provider for, and has high market shares in targeted applications. Electrification is driving higher sensor content, and this translates into Sensata considerably outgrowing end markets. Management expects Sensata to outgrow its end markets by 4%-6% per year. The rapid growth of battery electric vehicles (BEVs) is a powerful tailwind for Sensata. We acquired the shares at 9X normalized earnings. In the near term, investors are concerned about inflation and the potential recessionary impact on Sensata’s end markets, though we would note its largest end market (automotive) is still meaningfully below its 2017 unit volume peak.”
Andrey Armyagov/Shutterstock.com
Our calculations show that Sensata Technologies Holding plc (NYSE:ST) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Sensata Technologies Holding plc (NYSE:ST) was in 34 hedge fund portfolios at the end of the second quarter of 2022, compared to 30 funds in the previous quarter. Sensata Technologies Holding plc (NYSE:ST) delivered a -4.10% return in the past 3 months.
In July 2022, we also shared another hedge fund’s views on Sensata Technologies Holding plc (NYSE:ST) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
Disclosure: None. This article is originally published at Insider Monkey.
