Is it a Great Time to Exit Your Sea Ltd. (SE) Investment?

ClearBridge Investments, an investment management firm, published its “International Growth ADR Strategy” first quarter 2022 investor letter – a copy of which can be downloaded here. During the first quarter, the ClearBridge International Growth ADR 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. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022. 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 ADR Strategy mentioned Sea Limited (NYSE:SE) and explained its insights for the company. Founded in 2009, Sea Limited (NYSE:SE)  is a Singapore-based consumer Internet company with a $60.5 billion market capitalization. Sea Limited (NYSE:SE)  delivered a -51.46% return since the beginning of the year, while its 12-month returns are down by -56.59%. The stock closed at $108.58 per share on April 14, 2022.

Here is what ClearBridge Investments International Growth ADR Strategy has to say about Sea Limited (NYSE:SE) in its Q1 2022 investor letter:

“Most of our selling over the last several quarters has occurred among emerging growth companies, where we have reduced our exposure to under 5% to better manage risk. Exits from the emerging growth bucket in the quarter included Sea Ltd. (NYSE:SE) after the company issued below-consensus guidance due to a slowdown in its gaming business coupled with a second miss in its e-commerce business due to the pull-forward effects of the pandemic and continued difficult comps.”

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Our calculations show that Sea Limited (NYSE:SE) ranks 16th on our list of the 30 Most Popular Stocks Among Hedge Funds. Sea Limited (NYSE:SE) was in 108 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 117 funds in the previous quarter. Sea Limited (NYSE:SE) delivered a -39.86% return in the past 3 months.

In April 2022, we published an article that includes Sea Limited (NYSE:SE) in another article. 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.