ClearBridge Investments, an investment management firm, published its “International Growth ACWI ex-U.S. Strategy” first quarter 2022 investor letter – a copy of which can be downloaded here. During the first quarter, the ClearBridge International Growth EAFE Strategy underperformed its MSCI EAFE Index benchmark. The Strategy had losses across nine of the 10 sectors in which it was invested (out of 11 total), driven by the subsector and stock-specific allocations toward growth areas versus the benchmark. IT, health care, and industrials sectors were the primary detractors while the energy sector was the sole contributor. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, ClearBridge Investments International Growth EAFE Strategy mentioned Canadian Imperial Bank of Commerce (NYSE:CM) and explained its insights for the company. Founded in 1961, the Canadian Imperial Bank of Commerce (NYSE:CM) is a Toronto, Canada-based financial services company with a $51.9 billion market capitalization. Canadian Imperial Bank of Commerce (NYSE:CM) delivered a -1.65% return since the beginning of the year, while its 12-month returns are up by 15.70%. The stock closed at $114.64 per share on April 14, 2022.
Here is what ClearBridge Investments International Growth EAFE Strategy has to say about Canadian Imperial Bank of Commerce (NYSE:CM) in its Q1 2022 investor letter:
“We also added Canadian Imperial Bank of Commerce (NYSE:CM), which should benefit from a consolidating bank market and higher rates as Canada catches up with the U.S. in terms of reopening and GDP growth recovery.
These recent adds complement our financials exposure in Europe. While sensitive to the macro environment, European banks have already taken a serious hit and trade at levels implying stagflation or a technical recession. Higher rates will help the banks and their capital levels are high across the entire sector. Provisioning reserve releases are unlikely from here and perhaps faster buildup is needed again for future losses in the years to come, but we believe these headwinds are already priced in.”
Our calculations show that the Canadian Imperial Bank of Commerce (NYSE:CM) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Canadian Imperial Bank of Commerce (NYSE:CM) was in 15 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 13 funds in the previous quarter. Canadian Imperial Bank of Commerce (NYSE:CM) delivered a -12.34% return in the past 3 months.
In March 2022, we published an article that includes Canadian Imperial Bank of Commerce (NYSE:CM) in 10 Bank Dividend Stocks with Over 4% Yield. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
