Aegis Value Fund / Aegis Financial Corporation on Harley-Davidson, Inc.
Thesis
Aegis bought Harley-Davidson at multi-year low levels well below book value. The fund views the century-old brand as a turnaround rather than a growth-at-any-price story. New management under Artie Starrs has launched a Back to the Bricks plan focused on repairing dealer relationships and improving the affordability of entry-level motorcycles. The investment case is that better execution and a more accessible product lineup can attract a new generation of riders while the low starting valuation limits how much optimism is already embedded in the shares.
“we bought into a century-old American brand at multi-year low levels well below book value”