Does Avantor (AVTR) Have Robust Structural Tailwinds?
Broyhill Asset Management, a boutique investment firm, released its fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The past two years were mirror images of each other for equity investors. Global stocks increased by 22% in 2022 after declining by 18% the year before. The fourth quarter saw exceptionally high portfolio activity. Although Broyhill's fully invested managed funds underperformed year-over-year broader equities benchmarks, they avoided problems during the falls in 2021 and 2022, and their relative performance is still well above any longer-term horizon. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Broyhill Asset Management featured stocks such as Avantor, Inc. (NYSE:AVTR) in its Q4 2023 investor letter. Headquartered in Radnor, Pennsylvania, Avantor, Inc. (NYSE:AVTR) provides mission-critical products and services to biopharma, healthcare, education and government, advanced technologies, and applied materials industries. On February 16, 2024, Avantor, Inc. (NYSE:AVTR) stock closed at $23.76 per share. One-month return of Avantor, Inc. (NYSE:AVTR) was 10.10%, and its shares lost 3.18% of their value over the last 52 weeks. Avantor, Inc. (NYSE:AVTR) has a market capitalization of $16.116 billion.
Broyhill Asset Management stated the following regarding Avantor, Inc. (NYSE:AVTR) in its fourth quarter 2023 investor letter:
"Recent investments in this bucket include Ball Corp, Fidelity National Information Services, and Avantor, Inc. (NYSE:AVTR). Avantor is another compelling self-help story with robust structural tailwinds. Private equity-backed management made a significant acquisition, pre-COVID, which took leverage up to 7x-8x right before the business hit a wall. While we don't have corporate actions on the horizon here to trigger an aggressive debt paydown, we expect leverage to fall back below 3x in FY25 as the cycle finds a bottom and volumes pick up, driving margin expansion and free cash flow generation on top of a largely fixed cost base."
Front view of a scientist working in a laboratory, conducting research on a biopharmaceutical product.
Avantor, Inc. (NYSE:AVTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Avantor, Inc. (NYSE:AVTR) was held by 41 hedge fund portfolios, up from 36 the previous quarter, according to our database.
We discussed Avantor, Inc. (NYSE:AVTR) in another article and shared the list of best specialty chemical stocks to buy. In addition, please check out our hedge fund investor letters Q4 2023 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.
