International Paper Company (IP) Stock Experienced a Strong Turnaround After Leadership Change

ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. Though initially positive, stories on possible tariffs, global trade conflict, and a rotation out of AI-related tech firms sent equities lower in the first quarter. In this environment, the ClearBridge Mid Cap Strategy underperformed the benchmark, Russell Midcap Index in the quarter, due to idiosyncratic headwinds, strengthened by the market volatility; put pressure on several of strategy’s technology and industrial holdings. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first quarter 2025 investor letter, ClearBridge Mid Cap Strategy emphasized stocks such as International Paper Company (NYSE:IP). International Paper Company (NYSE:IP) produces and sells renewable fiber-based packaging and pulp products. The one-month return of International Paper Company (NYSE:IP) was -10.13%, and its shares gained 24.39% of their value over the last 52 weeks. On April 10, 2025, International Paper Company (NYSE:IP) stock closed at $46.20 per share with a market capitalization of $24.388 billion.

ClearBridge Mid Cap Strategy stated the following regarding International Paper Company (NYSE:IP) in its Q1 2025 investor letter:

“We exited our position in chemical manufacturer Ashland. We redeployed the proceeds to relatively new holding International Paper Company (NYSE:IP), which we believe represents a strong turnaround story under the leadership of a new CEO and his plan to optimize its footprint, adjust pricing dynamics and improve margins over the next few years.”

Why International Paper Company (IP) Went Up On Tuesday?

A close-up view of a hand assembling boxes of industrial packaging on an assembly line.

International Paper Company (NYSE:IP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held International Paper Company (NYSE:IP) at the end of the fourth quarter compared to 44 in the third quarter. While we acknowledge the potential of International Paper Company (NYSE:IP) 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.

We covered International Paper Company (NYSE:IP) in another article, where we shared ClearBridge Mid Cap Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2025 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.