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

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


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.

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