ClearBridge Investments, an investment management company, released its “ClearBridge Multi Cap Growth Strategy” third quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy underperformed the benchmark Russell 3000 Growth Index in the third quarter. The strategy posted losses in the seven out of eleven sectors in which it was invested, on an absolute basis. However, overall stock selection detracted from performance on a relative basis while overall sector allocation contributed. In addition, please check the fund’s top five holdings to know its best picks in 2023.
ClearBridge Multi Cap Growth Strategy highlighted stocks like Wolfspeed, Inc. (NYSE:WOLF) in the third quarter 2023 investor letter. Headquartered in Durham, North Carolina, Wolfspeed, Inc. (NYSE:WOLF) is a semiconductor manufacturing company. On December 8, 2023, Wolfspeed, Inc. (NYSE:WOLF) stock closed at $39.68 per share. One-month return of Wolfspeed, Inc. (NYSE:WOLF) was 22.92%, and its shares lost 52.32% of their value over the last three months. Wolfspeed, Inc. (NYSE:WOLF) has a market capitalization of $4.973 billion.
ClearBridge Multi Cap Growth Strategy made the following comment about Wolfspeed, Inc. (NYSE:WOLF) in its third 2023 investor letter:
“Stock selection has also been a performance headwind in 2023 with a handful of holdings suffering declines amid rapidly rising interest rates. Wolfspeed, Inc. (NYSE:WOLF), a semiconductor company producing silicon carbide materials and power devices, was one of the primary detractors from Strategy performance in both the third quarter and year-to-date. The company has been hampered by execution issues as it invests to meet the growing demand for substrates and chips for electric vehicles. Additionally, Wolfspeed’s construction of a new silicon carbide fabrication plant in Upstate New York has taken longer than expected to reach critical mass. As one of just a handful of companies in the portfolio that are still not profitable today, Wolfspeed has required additional financing but has been able to secure $1.25 billion in capital from an Apollo-led group as well as $2 billion in upfront cash for a 10-year deal to supply Renesas Electronics with SiC wafers. We remain confident that the company’s addressable market opportunity remains sizable and look for ramping utilization to drive gross margin improvement over time.”
A close-up of a lithium-ion battery surrounded by a network of silicon nanowires.
Wolfspeed, Inc. (NYSE:WOLF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Wolfspeed, Inc. (NYSE:WOLF) at the end of third quarter which was 23 in the previous quarter.
We discussed Wolfspeed, Inc. (NYSE:WOLF) in another article and shared the list of George Soros Stocks that are on sale now. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
