Is it a Great Time to Sell Your Nutanix (NTNX) Shares?

ClearBridge Investments, an investment management firm, published its “Large Cap Growth Strategy” third quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Large Cap Growth Strategy underperformed its Russell 1000 Growth Index benchmark during the third quarter. On an absolute basis, the Strategy had gains across four of the eight sectors in which it was invested (out of 11 sectors total). The leading contributors to performance were in the IT and health care sectors, while the consumer discretionary and industrials sectors were detractors. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

ClearBridge Large Cap Growth Strategy, in its Q3 2021 investor letter, mentioned Nutanix, Inc. (NASDAQ: NTNX) and discussed its stance on the firm. Nutanix, Inc. is a San Jose, California-based computer software company with a $6.6 billion market capitalization. NTNX delivered a -4.30% return since the beginning of the year, while its 12-month returns are up by -1.80%. The stock closed at $30.49 per share on January 07, 2022.

Here is what ClearBridge Large Cap Growth Strategy has to say about Nutanix, Inc.  in its Q3 2021 investor letter:

“To make room for Netflix and better concentrate the Strategy in our highest-conviction names, we exited positions in software makers Nutanix. Nutanix, a leader in hyperconverged infrastructure (HCI) that enables storage, computing and networking to operate as a single platform, has successfully pivoted from a license to a subscription model and under new leadership has improved execution. While business fundamentals should remain healthy, we see more upside in our application software and Internet holdings.”

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Based on our calculations, Nutanix, Inc. (NASDAQ: NTNX) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. NTNX was in 28 hedge fund portfolios at the end of the third quarter of 2021, compared to 29 funds in the previous quarter. Nutanix, Inc. (NASDAQ: NTNX) delivered a -13.82% return in the past 3 months.

In July 2021, we also shared another hedge fund’s views on NTNX in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

Disclosure: None. This article is originally published at Insider Monkey.