Is it Worthy to Invest in Sea Limited (SE)?

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 Sea Limited (NYSE: SE) and discussed its stance on the firm. Sea Limited is a Tempe, Arizona-based software company with a $104.3 billion market capitalization. SE delivered a -16.36% return since the beginning of the year, while its 12-month returns are down by -10.97%. The stock closed at $187.10 per share on January 07, 2022.

Here is what ClearBridge Large Cap Growth Strategy has to say about Sea Limited  in its Q3 2021 investor letter:

“Over the last year, we have sought to improve the up capture of the portfolio by expanding exposure to the select bucket of companies growing revenues and earnings at meaningfully above-average rates and targeting large total addressable markets. Newer names in the select bucket like Sea Limited have been strong contributors to relative performance over this period. We believe that owning a broader group of IT and Internet companies with different drivers to the businesses helps manage some of the risk in this relatively more expensive subsector.”

Photo by Yogesh Phuyal on Unsplash

Based on our calculations, Sea Limited (NYSE: SE) ranks 12th in our list of the 30 Most Popular Stocks Among Hedge Funds. SE was in 117 hedge fund portfolios at the end of the third quarter of 2021, compared to 104 funds in the previous quarter. Sea Limited (NYSE: SE) delivered a -42.12% return in the past 3 months.

In August 2021, we also shared another hedge fund’s views on SE 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.