Here’s Why Monolithic Power Systems (MPWR) Outperformed in Q1

ClearBridge Investments, an investment management company, released its “ClearBridge SMID Cap Growth Strategy” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the strategy underperformed the Russell 2500 Growth benchmark. On an absolute basis, the strategy gained in six of the 10 sectors it was invested in during the quarter. The IT, industrials, and healthcare sectors were the leading contributors while the financials and energy detracted from the performance. Allocation effects contributed in relative terms but were offset by stock selection. In addition, please check the fund’s top five holdings to know its best picks in 2023.

ClearBridge SMID Cap Growth Strategy highlighted stocks like Monolithic Power Systems, Inc. (NASDAQ:MPWR) in the Q1 2023 investor letter. Headquartered in Kirkland, Washington, Monolithic Power Systems, Inc. (NASDAQ:MPWR) designs and develops semiconductor-based power electronics solutions. On May 11, 2023, Monolithic Power Systems, Inc. (NASDAQ:MPWR) stock closed at $398.61 per share. One-month return of Monolithic Power Systems, Inc. (NASDAQ:MPWR) was -16.48%, and its shares lost 7.66% of their value over the last 52 weeks. Monolithic Power Systems, Inc. (NASDAQ:MPWR) has a market capitalization of $19.727 billion.

ClearBridge SMID Cap Growth Strategy made the following comment about Monolithic Power Systems, Inc. (NASDAQ:MPWR) in its Q1 2023 investor letter:

“Stock selection in the IT sector was the leading contributor to performance during the first quarter, as initial prospects of a potential Fed reversal later in the year helped bolster market optimism in higher growth assets. This included Monolithic Power Systems, Inc. (NASDAQ:MPWR), which manufactures and sells semiconductor-based power electronics for a wide variety of applications. The company’s fourth quarter earnings exceeded market expectations, which set it apart from many semiconductor names which have derated due to cyclical concerns. Additionally, the company’s exposure to China benefited from increased investor optimism over a reopening and rebound in the Chinese economy.”

Monolithic Power Systems, Inc. (NASDAQ:MPWR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Monolithic Power Systems, Inc. (NASDAQ:MPWR) at the end of the fourth quarter, which was 43 in the previous quarter.

We discussed Monolithic Power Systems, Inc. (NASDAQ:MPWR) in another article and shared the list of growth stocks that hedge funds are dumping. In addition, please check out our hedge fund investor letters Q1 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.