Tenaris S.A. (TS) Declined on Weaker Oil Prices

Jul 17, 2023

Baron Funds, an investment management company, released its “Baron Emerging Markets Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund gained 2.68% (Institutional Shares), compared to a 3.96% return for its principal benchmark, the MSCI EM Index, and a 4.27% return for the MSCI EM IMI Growth Index. High volatility and swings in sentiment and leadership drove the fund to modestly underperform the core benchmark and the all-cap growth proxy in the period. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Baron Emerging Markets Fund highlighted stocks like Tenaris S.A. (NYSE:TS) in the first quarter 2023 investor letter. Based in Luxembourg, Tenaris S.A. (NYSE:TS) is a steel tubular products manufacturer. On June 23, 2023, Tenaris S.A. (NYSE:TS) stock closed at $28.05 per share. One-month return of Tenaris S.A. (NYSE:TS) was 8.97%, and its shares gained 5.85% of their value over the last 52 weeks. Tenaris S.A. (NYSE:TS) has a market capitalization of $16.557 billion.

Baron Emerging Markets Fund made the following comment about Tenaris S.A. (NYSE:TS) in its first quarter 2023 investor letter:

"Tenaris S.A. (NYSE:TS) manufactures seamless steel pipe products with large operations in the U.S., Latin America, and the Middle East. Most of its products are oil country tubular goods (OCTG) for the energy industry. Shares fell due to the decline in oil prices and investor expectations of weaker oil demand. We retain conviction. The conflict in Ukraine highlighted the need to reorient supply chains away from politically risky jurisdictions such as Russia. Near term, this focus on energy security will likely result in increased reliance on the domestic supply of hydrocarbons, particularly U.S. shale gas. As one of the lowest-cost OCTG producers, Tenaris should be a major beneficiary of the increase in capital expenditures on U.S. drilling operations. We also expect Tenaris will continue to generate better pricing and higher margins for its OCTG products due to limited supply."

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Tenaris S.A. (NYSE:TS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Tenaris S.A. (NYSE:TS) at the end of first quarter 2023 which was 16 in the previous quarter.

We discussed Tenaris S.A. (NYSE:TS) in another article and shared ClearBridge International Value Strategy's views on the company. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.