What Makes Ferroglobe PLC (GSM) a Good Addition to Your Portfolio?
Investment management company Ave Maria recently released its “Ave Maria Focused Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 14.62% compared to the S&P MidCap 400 Growth Index’s 9.94% return. For the full year, the fund returned 38.73% compared to the 17.50% return for the index. You can check the top 5 holdings of the fund to know its best picks in 2023.
Ave Maria Focused Fund featured stocks like Ferroglobe PLC (NASDAQ:GSM) in the Q4 2023 investor letter. Headquartered in London, the United Kingdom, Ferroglobe PLC (NASDAQ:GSM) is a silicon and specialty metals industry. On March 11, 2024, Ferroglobe PLC (NASDAQ:GSM) stock closed at $4.3100 per share. One-month return of Ferroglobe PLC (NASDAQ:GSM) was -13.45%, and its shares lost 6.71% of their value over the last 52 weeks. Ferroglobe PLC (NASDAQ:GSM) has a market capitalization of $807.84 billion.
Ave Maria Focused Fund stated the following regarding Ferroglobe PLC (NASDAQ:GSM) in its fourth quarter 2023 investor letter:
"Ferroglobe PLC (NASDAQ:GSM) was added to the portfolio in the fourth quarter. Ferroglobe is a leading manufacturer of silicon metal, which is a critical input for hundreds of industrial and consumer applications. It was formed via a merger of two companies, but the integration initially went poorly, causing a decline in the company’s stock price. New management was brought in to rectify the situation. The new team successfully completed the integration, which lowered the ongoing costs of the operations and eliminated the company’s debt. Going forward, regulations in the United States and Europe should dramatically increase the production of solar panels. Silicon metal is an irreplaceable input for solar panels, and this new demand for silicon metal will make Ferroglobe’s revenue less cyclical. Now that Ferroglobe has a fortress balance sheet, management has room to enact a large share repurchase initiative. At the time of the initial investment, the Fund was able to purchase Ferroglobe for almost half the replacement cost of its assets. The Fund exited positions in Nvidia, Tyler Technologies, and Valvoline, in part, to fund the Ferroglobe purchase and increase the position sizes of some existing holdings."
An underground mine filled with heavy machinery digging up valuable minerals.
Ferroglobe PLC (NASDAQ:GSM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Ferroglobe PLC (NASDAQ:GSM) was held by 25 hedge fund portfolios, compared to 19 in the previous quarter, according to our database.
We discussed Ferroglobe PLC (NASDAQ:GSM) in another article and shared the list of largest magnesium-producing companies and the best magnesium 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.
Suggested Articles:
Disclosure: None. This article is originally published at Insider Monkey.
