Why One Hedge Fund Has a $28 Million Bet on This Electronics Manufacturing Stock

New York-based Harvey Partners disclosed a buy of 41,763 shares in Littelfuse (NASDAQ:LFUS), increasing its position by an estimated $13 million during the third quarter, according to a November 14 SEC filing.

What Happened

According to a Securities and Exchange Commission (SEC) filing released November 14, Harvey Partners increased its stake in Littelfuse (NASDAQ:LFUS) by 41,763 shares over the previous quarter. The post-trade position totals 108,700 shares valued at $28.2 million as of September 30. The fund reported 46 positions and $1.1 billion in 13F reportable U.S. equity assets.

What Else to Know

The fund's purchase brought Littelfuse to 2.5% of 13F AUM, putting it outside the top five holdings.

Top holdings after the filing:

• NYSE: NPO: $56.3 million (5.1% of AUM)
• NYSE: BWXT: $53.4 million (4.9% of AUM)
• NYSE: AZZ: $53 million (4.8% of AUM)
• NASDAQ: GLDD: $44.4 million (4% of AUM)
• NASDAQ: ADEA: $43.9 million (4% of AUM)

As of Friday, shares were priced at $259.55, up about 7% over the past year and underperforming the S&P 500, which is up about 13%.

Company Overview

Company Snapshot

• Littelfuse manufactures and sells circuit protection, power control, and sensing products, including fuses, relays, sensors, and semiconductors, serving electronics, transportation, and industrial markets.
• The company operates a diversified business model with revenue generated through product sales to OEMs, distributors, and direct customers across global markets.
• Primary customers include original equipment manufacturers, Tier-I suppliers, parts distributors, and companies in the automotive, industrial, and electronics sectors.

Littelfuse, Inc. is a global provider of critical circuit protection and power management solutions, with a broad portfolio supporting the electronics, transportation, and industrial end markets.

Foolish Take

For long-term investors, the move into Littelfuse stands out because it ties directly to a business posting resilient fundamentals even as the stock remains well below its late-2021 highs. Harvey Partners’ increased exposure signals confidence in a company executing through mixed industrial and auto-related demand—and one that just delivered double-digit revenue and profit growth across several key segments.

Littelfuse reported 10% year-over-year revenue growth to $625 million in the third quarter, along with 19% GAAP EPS growth to $2.77 and a 21.5% adjusted EBITDA margin. Electronics was a standout, with 18% sales growth and a 24% adjusted EBITDA margin, driven by strong passive-component demand and contributions from the Dortmund Fab acquisition. Notably, free cash flow more than doubled year-over-year to $131 million.

Against that backdrop, Harvey Partners’ decision to expand its position—now 2.5% of 13F AUM—fits a pattern of targeting industrial technology names with durable secular demand but temporarily discounted valuations.

Glossary

13F reportable assets: U.S. equity securities that institutional investment managers must disclose quarterly to the SEC.
Assets under management (AUM): The total market value of investments managed by a fund or firm on behalf of clients.
Stake: The ownership interest or amount of shares held in a company by an investor or fund.
Dividend yield: Annual dividends paid by a company divided by its share price, expressed as a percentage.
Forward price-to-earnings ratio: A valuation metric comparing a company's current share price to its expected future earnings per share.
EV/EBITDA ratio: Enterprise value divided by earnings before interest, taxes, depreciation, and amortization; used to assess company valuation.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Original equipment manufacturer (OEM): A company that produces parts or equipment used in another company's end products.
Tier-I supplier: A company that supplies components directly to original equipment manufacturers, often as a primary vendor.
Distributors: Companies that purchase products from manufacturers to resell them to retailers or end customers.
Position: The amount of a particular security or asset held by an investor or fund.
Post-trade: The status or value of a holding after a new transaction has been completed.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Azz and BWX Technologies. The Motley Fool has a disclosure policy.