ClearBridge Investments, an investment management company, released its “ClearBridge Dividend Strategy” third quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy underperformed its S&P 500 Index benchmark in the third quarter. The strategy gained from three of the eleven sectors it invested in during the quarter on an absolute basis. Stock selection detracted while sector allocation contributed positively on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2023.
ClearBridge Dividend Strategy highlighted stocks like RTX Corporation (NYSE:RTX) in the third quarter 2023 investor letter. Headquartered in Arlington, Virginia, RTX Corporation (NYSE:RTX) is an aerospace and defense company. On October 10, 2023, RTX Corporation (NYSE:RTX) stock closed at $73.35 per share. One-month return of RTX Corporation (NYSE:RTX) was -2.92%, and its shares lost 11.62% of their value over the last 52 weeks. RTX Corporation (NYSE:RTX) has a market capitalization of $106.762 billion.
ClearBridge Dividend Strategy made the following comment about RTX Corporation (NYSE:RTX) in its Q3 2023 investor letter:
“On the downside, shares of industrials company RTX Corporation (NYSE:RTX) underperformed significantly. On July 25 RTX announced it had discovered a manufacturing defect in some of its jet engines. RTX would have to ground the engines, replace the parts and reimburse the airlines for the downtime.
While this development weighed on the stock, our active management of the position meaningfully reduced the size of the blow. Earlier in July we had significantly trimmed our position to reflect some cyclical risks, so we were relatively less exposed when shares sold off following the announcement. When RTX delayed a scheduled update in early September, we interpreted it as a modestly negative development and further pared our position. When the update came, the stock sold off significantly on news the debacle would amount to around $3 billion over three years — the high end of investor expectations.
As we sit here today, we think the market’s reaction to RTX is likely overdone. $3 billion is a large sum, but the company’s market cap has declined over $30 billion since first releasing the news in late July. While this is a black eye for the company and will create headwinds for some time, we think it likely that the current level will mark a durable low and see opportunities to add back a small amount of the RTX we sold at higher prices earlier in the summer.”
An aeronautics engineer inspecting a model aircraft engine in a factory setting. Editorial photo for a financial news article. 8k. –ar 16:9
RTX Corporation (NYSE:RTX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held RTX Corporation (NYSE:RTX) at the end of the second quarter, which was 48 in the previous quarter.
We discussed RTX Corporation (NYSE:RTX) in another article and shared the list of George Soros Stocks that are on sale. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 15 Best Ex-Cop Jobs for Former Police Officers
- 30 Least Developed Countries in the World and Funds that Invest in Them
- 25 Best Cheap Summer Vacation Destinations In The US
Disclosure: None. This article is originally published at Insider Monkey.
