ClearBridge Investments, an investment management firm, published its “Small Cap Value Strategy” third-quarter 2022 investor letter – a copy of which can be downloaded here. The ClearBridge Small Cap Value Strategy underperformed its Russell 2000 Value Index benchmark during the third quarter. On an absolute basis, the Strategy had losses in eight out of 11 sectors in which it was invested during the quarter. The leading detractors were the IT and financial sectors while the energy, consumer staples, and healthcare sectors were the positive contributors. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.
In its Q3 2022 investor letter, ClearBridge Small Cap Value Strategy mentioned NCR Corporation (NYSE:NCR) and explained its insights for the company. Founded in 1884, NCR Corporation (NYSE:NCR) is an Atlanta, Georgia-based software, consulting, and technology company with a $2.8 billion market capitalization. NCR Corporation (NYSE:NCR) delivered a -48.66% return since the beginning of the year, while its 12-month returns are down by -52.58%. The stock closed at $20.64 per share on November 09, 2022.
Here is what ClearBridge Small Cap Value Strategy has to say about NCR Corporation (NYSE:NCR) in its Q3 2022 investor letter:
“Information technology (IT) proved a headwind to performance, and included the portfolio’s worst performing stock, NCR (NYSE:NCR), during the quarter. Broadly, the increase in interest rates discounted longer-term cash flows, compressed multiples and pressured share prices for the typically more growth-oriented sector. Still others felt pressure for company-specific reasons, such as the market’s disappointment that ATM and point-of-sale software company NCR was no longer the center of a bidding war between two private equity firms. However, we have high conviction in management’s decision to split the company, allowing for each entity to devote greater time and attention to optimizing very profitable and high cash flow generating businesses. We continue to own NCR as we believe the assets, and their respective free cash flow generation, are undervalued regardless of whether it continues as one company or two.”
Our calculations show that NCR Corporation (NYSE:NCR) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. NCR Corporation (NYSE:NCR) was in 47 hedge fund portfolios at the end of the second quarter of 2022, compared to 36 funds in the previous quarter. NCR Corporation (NYSE:NCR) delivered a -40.09% return in the past 3 months.
In October 2022, we published an article that includes NCR Corporation (NYSE:NCR) in the 5 Best Growth Stocks to Buy According to Marc Majzner’s Clearline Capital. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.
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Disclosure: None. This article is originally published at Insider Monkey.
