Overstone World All Cap Equity Fund on Stellantis N.V.
Thesis
Stellantis owns automotive brands including Fiat, Citroën and Chrysler. Its shares suffered from Chinese competition and the transition toward electric vehicles. The manager considers the company seriously undervalued despite these industry challenges. Rather than exit after underperformance, it added to the position during the quarter as a contrarian value investment.
“We regard both as seriously undervalued and increased our position in each during the quarter.”
Key risks
- Chinese automotive competition is pressuring the business.
- The shift toward electric vehicles creates execution and profitability challenges.