Is Taiwan Semiconductor (TSM) A Worthy Investment Pick?

·2 min read

Saturna Capital, an investment management firm, published its “Amana Funds” fourth-quarter 2021 investor letter – a copy of which can be downloaded here. For the fourth quarter of 2021, the Amana Income Fund Investor Shares returned 13.76% and the Institutional Shares returned 13.85%. The Amana Growth Fund sprinted to a strong finish in the fourth quarter, wrapping up an outstanding year by any measure. For the three months ended December 31, 2021, the Amana Growth Fund Investor Shares returned 14.41%, significantly outpacing the 6.91% Morningstar "Large Growth" category return, as well as the 11.03% return of the S&P 500. For the 2021 calendar year, Amana Developing World Fund Investor Shares returned 7.31% versus -2.54% for the MSCI Emerging Markets Index. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Saturna Capital Amana Funds, in its Q4 2021 investor letter, mentioned Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) and discussed its stance on the firm. Founded in 1987, Taiwan Semiconductor Manufacturing Company Limited is a Hsinchu, Taiwan-based multinational semiconductor contract manufacturing and design company with a $534.3 billion market capitalization, and is currently spearheaded by its CEO, C. C. Wei. TSM delivered a -16.88% return since the beginning of the year, while its 12-month returns are down by -12.15%. The stock closed at $100.00 per share on March 08, 2022.

Here is what Saturna Capital Amana Funds has to say about Taiwan Semiconductor Manufacturing Company Limited in its Q4 2021 investor letter:

"Concerning the stock market, we avoid short-term predictions. But what of the next decade? A theme since the start of the pandemic has been the big getting bigger. On one hand, semiconductors are foundational to the global economy and Taiwan Semiconductor dominates, but Taiwan’s geopolitical vulnerabilities raise risks."

Photo by Umberto on Unsplash

Our calculations show that Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) ranks 13th on our list of the 30 Most Popular Stocks Among Hedge Funds. TSM was in 72 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 67 funds in the previous quarter. Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) delivered a -17.90% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on TSM in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.