Is Zai Lab (ZLAB) A Smart Long-Term Buy?

ClearBridge Investments, an investment management firm, published its “International Growth EAFE Strategy” third quarter 2021 investor letter – a copy of which can be downloaded here. During the third quarter, the ClearBridge International Growth EAFE Strategy underperformed its MSCI EAFE Index benchmark. The Strategy delivered gains across two of the 10 sectors in which it was invested (out of 11 total), with the health care sector the primary contributor, while the consumer discretionary, communication services, and consumer staples sectors were the largest detractors. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

ClearBridge International Growth EAFE Strategy, in its Q3 2021 investor letter, mentioned Zai Lab Limited (NASDAQ: ZLAB) and discussed its stance on the firm. Zai Lab Limited is a Cayman Islands-based biopharmaceutical company with a $5.3 billion market capitalization. ZLAB delivered a -12.36% return since the beginning of the year, while its 12-month returns are down by -62.23%. The stock closed at $55.08 per share on January 07, 2022.

Here is what ClearBridge International Growth EAFE Strategy has to say about Zai Lab Limited  in its Q3 2021 investor letter:

“Biotechnology company Zai Lab is now our only holding in China. The government wants to grow the domestic health care space as part of its social mission, so although Zai is not a big position, we still believe it is a growth story with immense optionality. The stock was hurt in the quarter by negative sentiment spreading into more areas of the Chinese market.”

RAJ CREATIONZS / shutterstock.com

Based on our calculations, Zai Lab Limited (NASDAQ: ZLAB) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. ZLAB was in 36 hedge fund portfolios at the end of the third quarter of 2021, compared to 36 funds in the previous quarter. Zai Lab Limited (NASDAQ: ZLAB) delivered a -46.18% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on ZLAB 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.