Here’s ClearBridge Value Strategy Chose Schlumberger Limited (SLB) Over Baker Hughes

ClearBridge Investments, an investment management company, released its “ClearBridge Value Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the strategy outperformed its Russell 1000 Value benchmark. The strong contributions from financials and energy holdings overcame detractors in consumer staples. In addition, please check the fund’s top five holdings to know its best picks in 2024.

ClearBridge Value Strategy highlighted stocks like Schlumberger Limited (NYSE:SLB) in the fourth quarter 2024 investor letter. Headquartered in Houston, Texas, Schlumberger Limited (NYSE:SLB) is an oil field services company. On January 10, 2025, Schlumberger Limited (NYSE:SLB) stock closed at $38.62 per share. One-month return of Schlumberger Limited (NYSE:SLB) was -3.16%, and its shares lost 22.68% of their value over the last 52 weeks. Schlumberger Limited (NYSE:SLB) has a market capitalization of $54.54 billion.

ClearBridge Value Strategy stated the following regarding Schlumberger Limited (NYSE:SLB) in its Q4 2024 investor letter:

“Our largest sell was Baker Hughes, which we made to fund our new position in oilfield service provider peer Schlumberger Limited (NYSE:SLB). While we acknowledge that Baker Hughes has stronger near-term tailwinds, its strong performance has resulted in a historically wide valuation gap to Schlumberger. Schlumberger has similar exposure to the oil and gas industry, but also has an improving portfolio of assets and greater digital initiatives that we believe will lead it to outperform Baker Hughes over the long run.”

Is Schlumberger Limited (SLB) Among Top Oil and Gas Stocks To Invest In According to Hedge Funds?

An aerial view of a well site, depicting the scale of oil and gas operations.

Schlumberger Limited (NYSE:SLB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held Schlumberger Limited (NYSE:SLB) at the end of the third quarter which was 67 in the previous quarter. While we acknowledge the potential of Schlumberger Limited (NYSE:SLB) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Schlumberger Limited (NYSE:SLB) and shared the list of best energy stocks to invest in. In addition, please check out our hedge fund investor letters Q4 2024 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.