ClearBridge Investments, an investment management firm, published its “All Cap Growth Strategy” first quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge All Cap Growth Strategy outperformed its Russell 3000 Growth Index benchmark during the first quarter. On an absolute basis, the Strategy had gains across eight of the 10 sectors in which it was invested (out of 11 sectors total). You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
In the Q1 2021 Investor Letter, the fund highlighted a few stocks and Sea Ltd (NYSE:SE) is one of them. Sea Ltd (NYSE:SE) is an internet company. In the last three months, Sea Ltd (NYSE:SE) stock gained 18%. Here is what the fund said:
“Singapore-based Sea maintains leading positions in Southeast Asia in video games and e-commerce and operates an emerging digital payments and banking business. While the company is investing heavily into e-commerce and payments, this growth is being funded by its highly profitable gaming segment. We see a long runway for growth across Sea’s businesses with multiple opportunities like e-commerce expansion in Latin America not fully factored into the valuation today. The company also has a well-respected management team that has successfully executed in expanding its total addressable market. Along with existing holding Alibaba, Sea provides exposure to secular growth trends in emerging markets that are harder to replicate through U.S. stocks.”
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Last month, we published an article revealing that Sea Ltd (NYSE:SE) was one of the 10 best software stocks to buy, according to Cathie Wood.
In Q4 2020, the number of bullish hedge fund positions on Sea Ltd (NYSE:SE) stock increased by about 21% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in SE’s growth potential. Our calculations showed that Sea Ltd (NYSE:SE) is ranked #22 among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage:
Disclosure: None. This article is originally published at Insider Monkey.
