Nomura Small Cap Value Fund on Allegro MicroSystems Inc.
Thesis
Allegro MicroSystems makes sensor and power integrated circuits, primarily for automotive applications. The fund sees the company positioned at the intersection of automotive electrification, automation, AI data centers and robotics. Management has highlighted expanding content opportunities in next-generation AI data center racks, while the automotive business continues to gain share in electric-vehicle powertrains and advanced driver-assistance systems. The fund trimmed the position for portfolio-weight management but retained it because it believes the fundamentals remain strong.
“Allegro MicroSystems remains in the portfolio as we believe the company’s fundamentals are strong.”