Institutional ticker directory tracking stock mentions, long/short ideas, and high-conviction pitches extracted from quarterly hedge fund letters.
| Ticker | Company | Sector | Industry | Pitches | Stance |
|---|---|---|---|---|---|
| Fund / Manager | Thesis Excerpt | Stance | Period / Date | Action |
|---|---|---|---|---|
Plural Investing Chris Waller | “Strattec Security (STRT) is an automotive supplier that designs and manufactures door handles, power access, keys, locks, latches and other products. The company sells mostly to GM, Ford, and Stellantis, and 65% of sales are to the US. Strattec has effectively been run by the Stratton family from inception until July 2024. The company now has its first CEO who is genuinely independent of the Stratton family and is significantly increasing margins. The stock trades on 11x EV/FCF, but we believe that will fall to 3x over the next three years because of increasing margins and cash generation. We first bought shares this quarter around $70, it now trades for $82, and we think intrinsic value in three years will be around $200. Strattec had been led by Harold Stratton as CEO until 2012 then Chairman until October 2024, and our conversations with former employees suggest the company could have been run more efficiently. By 2023, value firm GAMCO had acquired a 25% stake in the business and wrote to the board. That ultimately resulted in Stratton, the CEO, and most of the board exiting. Jen Slater joined as CEO in July 2024 and has spent her entire career in the auto industry, where she turned around two businesses. Our background checks suggest she has the experience and track record required to improve Strattec's economics. She has already increased EBIT margins from 1.5% to 5.0% and has guided to 7-10%. FCF has increased from single-digit millions to $30mm p.a., while net cash has gone from $12mm to $107mm (partly the result of working capital she has released). If Slater hits her margin targets, the company will be generating around $50mm in FCF in three years and have net cash of over $200mm (including more working capital still to be released). Strattec's market cap is just $345mm. Our due diligence also suggests that Slater's plan is likely to continue working, and that there is significant room for further improvement from increased prices, reducing costs from suppliers and tariffs, automating some manufacturing, implementing a less siloed culture, and winning contracts with non-US auto OEMs. Although the auto industry has historically carried significant risks for investors, we believe that Strattec's balance sheet mitigates the downside. The company's $107mm of cash is growing by $30mm a year as things stand, and we believe another $30-40mm will be released through working capital reductions and a sale of a manufacturing facility. The company recently bought back $7mm in stock in just a few weeks and announced another $40mm buyback, which represents a total of about 14% of its share count. We believe that over the next three years Strattec will reach a 9% EBIT margin and generate $16.5/shr in FCF after using cash for buybacks and M&A, while still maintaining a net cash balance sheet. A 12x P/FCF multiple would value the company at $200/shr, vs its current price of $82/shr.” | NEUTRAL | Q2 2026 Jul 22, 2026 | View Pitch |
Each excerpt above is the manager's commentary on this ticker specifically. The full letter has the rest of their portfolio thinking, risk discussion, and broader institutional context.
