ClearBridge Investments on Lam Research (LRCX): “We Chose to Exit our Position After a Period of Extraordinary Performance”

ClearBridge Investments, an investment management firm, published its “Large Cap Value Strategy” third quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Large Cap Value Strategy outperformed its Russell 1000 Value Index benchmark during the third quarter. On an absolute basis, the Strategy had gains in six of 11 sectors in which it was invested for the quarter. The strongest contributions came from the financials and consumer discretionary sectors. The industrials, materials, and health care sectors were the main detractors. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

ClearBridge Large Cap Value Strategy, in its Q3 2021 investor letter, mentioned Lam Research Corporation (NASDAQ: LRCX) and discussed its stance on the firm. Lam Research Corporation is a Fremont, California-based semiconductor company with a $100.2 billion market capitalization. LRCX delivered a -0.99% return since the beginning of the year, while its 12-month returns are up by 43.97%. The stock closed at $712.00 per share on January 04, 2022

Here is what ClearBridge Large Cap Value Strategy has to say about Lam Research Corporation  in its Q3 2021 investor letter:

“It was a relatively quiet quarter in terms of portfolio changes, although we took advantage of very strong performance to exit semiconductor equipment manufacturer Lam Research. While Lam has extremely valuable technology and an exceptionally robust secular growth story, it is also highly cyclical, and we chose to exit our position after a period of extraordinary performance.”

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Based on our calculations, Lam Research Corporation (NASDAQ: LRCX) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. LRCX was in 47 hedge fund portfolios at the end of the third quarter of 2021, compared to 58 funds in the previous quarter. Lam Research Corporation (NASDAQ: LRCX) delivered a 28.08% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on LRCX in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

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