U.S. Markets closed
  • S&P 500

    3,825.33
    +39.95 (+1.06%)
     
  • Dow 30

    31,097.26
    +321.86 (+1.05%)
     
  • Nasdaq

    11,127.84
    +99.14 (+0.90%)
     
  • Russell 2000

    1,727.76
    +19.77 (+1.16%)
     
  • Crude Oil

    108.46
    +2.70 (+2.49%)
     
  • Gold

    1,812.90
    +5.60 (+0.31%)
     
  • Silver

    19.77
    -0.51 (-2.59%)
     
  • EUR/USD

    1.0430
    +0.0003 (+0.0313%)
     
  • 10-Yr Bond

    2.8890
    -0.0830 (-2.79%)
     
  • Vix

    26.70
    -2.01 (-7.00%)
     
  • GBP/USD

    1.2094
    -0.0009 (-0.0750%)
     
  • USD/JPY

    135.0980
    -0.0770 (-0.0570%)
     
  • BTC-USD

    19,188.90
    -24.49 (-0.13%)
     
  • CMC Crypto 200

    420.84
    +0.70 (+0.17%)
     
  • FTSE 100

    7,168.65
    -0.63 (-0.01%)
     
  • Nikkei 225

    26,095.35
    +159.73 (+0.62%)
     

Is Garrett Motion (GTX) Shares Still Worth Keeping?

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Alluvial Capital Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. Alluvial Fund closed out an excellent year on a quiet note, returning 0.5% in the fourth quarter. For the full year, Alluvial Fund rose 31.0%, nearly double the returns of benchmarks. 2021 was the finest year in Alluvial Fund’s history, the first in which our net return to limited partners exceeded 30%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Alluvial Capital Management, in its Q4 2021 investor letter, mentioned Garrett Motion Inc. (NYSE: GTX) and discussed its stance on the firm. Garrett Motion Inc. is a Switzerland-based automobile technology provider company with a $471.0 million market capitalization. GTX delivered a -9.84% return since the beginning of the year, while its 12-month returns are up by 17.34%. The stock closed at $7.24 per share on January 21, 2022.

Here is what Alluvial Capital Management has to say about Garrett Motion Inc. in its Q4 2021 investor letter:

"Garrett Motion is also feeling the effects of the troubles with global supply chains. Difficulties in sourcing semiconductors have led many large automotive manufacturers to slow production, which in turn delays orders for Garrett Motion’s turbochargers. Still, the environment has not prevented Garrett Motion from making progress on improving its balance sheet and beginning to return capital. In November, the company announced a plan to repurchase $100 million in common and preferred stock. Then in December, Garrett Motion announced it would accelerate the planned redemption of its Series B preferred stock held by Honeywell. By this time next year, Garrett Motion will have meaningfully reduced its liabilities and bought in quite a bit of stock at a very attractive price. As supply chains normalize, the company’s earnings and cash flow will benefit, giving the company the ability to return more capital to shareholders and invest in the transition to products for electric vehicles."

app, application, auto, automobile, automotive, car, computing, concept, control, dashboard, destination, digital, direction, display, driver, driving, electronics, future, futuristic, gprs, gps, guide, hand, innovation, interactive, internet, lcd, location, male, man, modern, monitor, navigate, navigating, navigation, navigator, panel, people, pointing, road, route, satellite, screen, search, smart, system, technology, touchscreen, transport, vehicle
app, application, auto, automobile, automotive, car, computing, concept, control, dashboard, destination, digital, direction, display, driver, driving, electronics, future, futuristic, gprs, gps, guide, hand, innovation, interactive, internet, lcd, location, male, man, modern, monitor, navigate, navigating, navigation, navigator, panel, people, pointing, road, route, satellite, screen, search, smart, system, technology, touchscreen, transport, vehicle

Copyright: dolgachov / 123RF Stock Photo

Our calculations show that Garrett Motion Inc. (NYSE: GTX) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. GTX was in 21 hedge fund portfolios at the end of the third quarter of 2021, compared to 17 funds in the previous quarter. Garrett Motion Inc. (NYSE: GTX) delivered a -2.69% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on GTX in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.