ClearBridge Investments, an investment management company, released its “ClearBridge Value Equity Strategy” first quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy outperformed its benchmark, the Russell 1000 Value Index, in the first quarter. The outperformance of the strategy in the quarter was driven by strong stock selection in the communication services and industrials sectors which overcame weakness in the financials sector. In addition, please check the fund’s top five holdings to know its best picks in 2023.
ClearBridge Value Equity Strategy highlighted stocks like Capital One Financial Corporation (NYSE:COF) in the first quarter 2023 investor letter. Headquartered in McLean, Virginia, Capital One Financial Corporation (NYSE:COF) is a financial services company. On July 3, 2023, Capital One Financial Corporation (NYSE:COF) stock closed at $111.05 per share. One-month return of Capital One Financial Corporation (NYSE:COF) was -0.87%, and its shares gained 4.12% of their value over the last 52 weeks. Capital One Financial Corporation (NYSE:COF) has a market capitalization of $42.4 billion.
ClearBridge Value Equity Strategy made the following comment about Capital One Financial Corporation (NYSE:COF) in its first quarter 2023 investor letter:
“We also added Capital One Financial Corporation (NYSE:COF), a largely domestic diversified financial services company with a focus on credit cards that also operates a leading auto lending business. We believe recent regulatory changes such as the Current Expected Credit Losses (CECL) methodology of the U.S. Treasury and the ability of credit card companies to manage credit risks have improved the risk profile of leading credit card businesses but have been underappreciated by the market. With its substantial financial reserves, we believe that Capital One is well-positioned to navigate future economic uncertainty. Additionally, we believe this current market and credit cycle is fundamentally different than prior ones due to stronger consumer balance sheets, excess savings, strong wage growth and strong employment environment. As a result, we believe Capital One’s current price has already been overly discounted, and we expect it to offer compelling upside despite further risks of drawdown when a recession emerges.”
Capital One Financial Corporation (NYSE:COF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held Capital One Financial Corporation (NYSE:COF) at the end of first quarter 2023 which was 55 in the previous quarter.
We discussed Capital One Financial Corporation (NYSE:COF) in another article and shared Michael Big Short Burry’s recent stock purchases. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 10 Best July Dividend Stocks To Buy
- 12 Best NASDAQ Penny Stocks to Buy
- 15 Easiest Countries to Get Laid in Asia
Disclosure: None. This article is originally published at Insider Monkey.
