Why Oldfield Partners Keeps Betting Bigger on Lear Stock Despite Its 34% Surge

David Oldfield’s fund just doubled down on Lear Corporation (NYSE:LEA), acquiring another 33,313 shares worth approximately $3.56 million in Q4. What’s striking about this move is the timing—Lear stock has already surged 34% over the past 12 months, outpacing the S&P 500 by a significant margin. Yet Oldfield Partners didn’t pull back; instead, it increased its conviction in the automotive supplier.

The Position Is Now a Portfolio Heavyweight

After the latest purchase, Oldfield’s total Lear stake reached 644,286 shares valued at $73.84 million as of quarter-end. This single position now accounts for 20.93% of the fund’s 13F assets under management, making it the second-largest holding after NOV Inc. ($78.9 million, 22.4% of AUM).

The fund’s total Lear position value grew by $12.37 million during Q4—a combination of the fresh share purchases and favorable price movement. For context, David Oldfield’s initial investment came in Q1 2025 with a 600,000-share purchase, which has since become a core portfolio anchor.

The Valuation Case Remains Compelling

Despite the stock’s significant appreciation, Lear trades at just 5.6x EV/EBITDA—well below its five-year average of 7.3x. The price-to-sales ratio sits at only 0.29, compared to the historical average of 0.38. These metrics suggest the market hasn’t fully priced in Lear’s competitive advantages and growth trajectory.

As a designer and manufacturer of automotive seating systems and electrical distribution systems for global OEMs, Lear commands a diversified customer base spanning North America, Europe, Asia, and South America. The company generates approximately $23 billion in trailing revenue and $535.3 million in net income, with a 2.48% dividend yield and a track record of 12% annual dividend growth over the past five years.

China’s EV Boom Could Be the Hidden Growth Driver

What makes Oldfield’s continued accumulation particularly interesting is Lear’s expanding footprint among Chinese electric vehicle manufacturers. Traditional automotive suppliers often get overlooked in growth discussions, but Lear’s early positioning with China’s burgeoning EV makers could unlock significant upside. While the company maintains its core business serving established global automakers producing passenger vehicles and light trucks, this emerging customer segment represents a meaningful long-term opportunity.

Simultaneously, Lear has optimized its capital structure by reducing share count by approximately 3% annually over the past five years—a shareholder-friendly approach that enhances per-share economics alongside organic growth.

What Investors Should Take Away

Oldfield Partners’ willingness to add shares at higher prices—rather than trim a winning position—telegraphs management’s confidence in the company’s forward prospects. The fund’s recent accumulation, combined with depressed valuation multiples, suggests that even after Lear’s strong 2025 performance, the stock may still offer value for patient investors focused on quality industrial names with reliable cash generation and exposure to secular automotive trends. The cyclicality of the auto supply industry remains a consideration, but Lear’s market position and strategic positioning suggest the fund sees this as a durable long-term allocation.