Home Hedge Funds Here’s Why Chartwell Investment Reinvested in General Motors (GM)

Here’s Why Chartwell Investment Reinvested in General Motors (GM)

6
0

Chartwell Investment Partners, an asset management company, released its second quarter 2022 investor letter. A copy of the same can be downloaded here. For the second quarter, Chartwell-managed accounts fell in line with their respective index benchmarks, however, the Chartwell Dividend Model outperformed by a significant margin versus its benchmark. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Chartwell Investment Partners mentioned General Motors Company (NYSE:GM) and explained its insights for the company. Founded in 1908, General Motors Company (NYSE:GM) is a Detroit, Michigan-based multinational automotive manufacturing company with a $54.854.8 billion market capitalization. General Motors Company (NYSE:GM) delivered a -36.11% return since the beginning of the year, while its 12-month returns are down by -27.85%. The stock closed at $37.68 per share on September 22, 2022.

Here is what Chartwell Investment Partners has to say about General Motors Company (NYSE:GM) in its Q2 2022 investor letter:

“The three worst-performing stocks in the Dividend Equity accounts includes General Motors (NYSE:GM, 2.4%), down 27.4%. GM posted solid first-quarter earnings, but, supply issues continue to be a headwind and the market appears to be “pricing-in” at least a mild recession. The question seems to be: by the time the supply constraints are resolved, will we be in a much-worse economic scenario that will “hit” the demand side?

After a couple quarters of higher-than-average trading, Q2 was extremely light in both the Growth & Balanced and Dividend Equity accounts (see below). After trimming GM earlier in the year at much higher price levels, we added back to the position. Now trading at $32 per share, GM’s P/E multiple on 2022 earnings estimates is below 5 times its annual earnings per share, which we think is very attractive and is already pricing-in at least a mild recession.”

General Motors Company (NYSE:GM), showroom, car, Cadillac

General Motors Company (NYSE:GM), showroom, car, Cadillac

TonyV3112 / Shutterstock.com

Our calculations show that General Motors Company (NYSE:GM) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. General Motors Company (NYSE:GM) was in 75 hedge fund portfolios at the end of the second quarter of 2022, compared to 76 funds in the previous quarter. General Motors Company (NYSE:GM) delivered a 13.55% return in the past 3 months.

In July 2022, we also shared another hedge fund’s views on General Motors Company (NYSE:GM) 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.

Source link

Previous articleThe Commodities Feed: Macro headwinds | Article
Next articleCannon Beach real estate still a hot commodity with prices leveling a bit | News

LEAVE A REPLY

Please enter your comment!
Please enter your name here