Is Splunk (SPLK) a Wise Investment Choice?

ClearBridge Investments, an investment management firm, published its “Large Cap Growth Strategy” first 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 first quarter. On an absolute basis, the Strategy suffered losses across seven of the eight sectors in which it was invested (out of 11 sectors total). The leading detractors of performance were in the communication services and information technology (IT) sectors, while the financials sector was a 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 Large Cap Growth Strategy mentioned Splunk Inc. (NASDAQ:SPLK) and explained its insights for the company. Founded in 2003, Splunk Inc. (NASDAQ:SPLK)  is a San Francisco, California-based web-based application software developer with a $22.1 billion market capitalization. Splunk Inc. (NASDAQ:SPLK)  delivered a 19.05% return since the beginning of the year, while its 12-month returns are down by -7.15%. The stock closed at $137.77 per share on April 15, 2022.

Here is what ClearBridge Investments Large Cap Growth Strategy has to say about Splunk Inc. (NASDAQ:SPLK) in its Q1 2022 investor letter: 

“The portfolio also saw solid performance from cybersecurity name Splunk (NASDAQ:SPLK), which are gaining prominence as the risk of global cyberattacks increases as part of the Russian offensive. On an individual stock basis, leading contributors to absolute returns in the first quarter included position in Splunk.”

Our calculations show that Splunk Inc. (NASDAQ:SPLK) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Splunk Inc. (NASDAQ:SPLK) was in 44 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 47 funds in the previous quarter. Splunk Inc. (NASDAQ:SPLK) delivered a 14.43% return in the past 3 months.

In March 2022, we published an article that includes Splunk Inc. (NASDAQ:SPLK) 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.