BorgWarner (BWA) Declined on Softer-than-Expected Earnings
Ariel Investments, an investment management company, released its “Ariel Appreciation Fund” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. Towards the end of 2023, Investor sentiment shifted from fears of a recession towards optimism for a soft landing. Against this backdrop, the Ariel Appreciation fund increased +10.70% in the quarter, trailing the +12.11% and +12.82% returns of both the Russell Midcap Value and Russell Midcap indices. Over the trailing one-year period, the fund traded +10.62% higher, lagging the Russell Midcap Value Index’s +12.71% gain and the +17.23% return of the Russell Midcap Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Ariel Appreciation Fund featured stocks like BorgWarner Inc. (NYSE:BWA) in its Q4 2023 investor letter. Headquartered in Auburn Hills, Michigan, BorgWarner Inc. (NYSE:BWA) offers solutions for combustion, hybrid, and electric vehicles. On March 11, 2024, BorgWarner Inc. (NYSE:BWA) stock closed at $32.13 per share. One-month return of BorgWarner Inc. (NYSE:BWA) was 3.48%, and its shares lost 23.29% of their value over the last 52 weeks. BorgWarner Inc. (NYSE:BWA) has a market capitalization of $7.383 billion.
Ariel Appreciation Fund stated the following regarding BorgWarner Inc. (NYSE:BWA) in its fourth quarter 2023 investor letter:
"Lastly, leading supplier of solutions for combustion, hybrid and electric vehicles BorgWarner Inc. (NYSE:BWA), declined in the period. Softer than expected earnings results and a reduction to both near and mid-term guidance driven by recent launch delays for new electric vehicles and slower sales momentum by several original equipment manufacturers weighed on shares. Nonetheless, management still expects electric vehicle sales of over $10 billion annually by 2027. Despite slower than anticipated EV adoption, we believe BWA remains well positioned near-term to benefit from its low-emission, combustion and hybrid vehicle product offerings and expect the company will grow intrinsic value throughout the evolution in the hybrid and EV market."
A worker in a factory suit inspecting the components of a diesel engine.
BorgWarner Inc. (NYSE:BWA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, BorgWarner Inc. (NYSE:BWA) was held by 25 hedge fund portfolios, compared to 25 in the previous quarter, according to our database.
We discussed BorgWarner Inc. (NYSE:BWA) in another article and shared Diamond Hill Large Cap Strategy's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
Disclosure: None. This article is originally published at Insider Monkey.
