Here’s Why ClearBridge Mid Cap Strategy Sold Coterra Energy (CTRA) in Q4

ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The fourth quarter was turbulent for mid-size stocks, which surged following the election and interest rate reductions before holding steady as the market shifted back to large cap leadership. The strategy outperformed its Russell Midcap Index during the fourth quarter driven by strong stock selection among IT and industrials holdings. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, ClearBridge Mid Cap Strategy emphasized stocks such as Coterra Energy Inc. (NYSE:CTRA). Coterra Energy Inc. (NYSE:CTRA) is a diversified energy company. The one-month return of Coterra Energy Inc. (NYSE:CTRA) was -5.35%, and its shares gained 4.23% of their value over the last 52 weeks. On February 26, 2025, Coterra Energy Inc. (NYSE:CTRA) stock closed at $26.87 per share with a market capitalization of $20.533 billion.

ClearBridge Mid Cap Strategy stated the following regarding Coterra Energy Inc. (NYSE:CTRA) in its Q4 2024 investor letter:

We exited our position in Coterra Energy Inc. (NYSE:CTRA), an independent oil and gas exploration and production company, following the company’s decision to acquire oil and gas assets in the Permian Basin in two transactions that we believe prioritize company size over operational efficiency.

Is Coterra Energy Inc. (CTRA) The Best Natural Gas Stock To Buy Now?

An oil rig pumping under the open sky of the Permian Basin.

Coterra Energy Inc. (NYSE:CTRA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held Coterra Energy Inc. (NYSE:CTRA) at the end of the fourth quarter compared to 39 in the third quarter. While we acknowledge the potential of Coterra Energy Inc. (NYSE:CTRA) 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 Coterra Energy Inc. (NYSE:CTRA) and shared the list of top stocks from Jim Cramer’s Latest Calls. 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.