ClearBridge Investments, an investment management company, released its “ClearBridge Global Infrastructure Value Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. Infrastructure rose in the second quarter but lagged behind global equities, as the strength in defensive sectors diminished towards the end of the quarter. The Strategy underperformed in the quarter relative to the S&P Global Infrastructure Index and on a U.S. dollar basis, mainly driven by the stock selection in the rails sector. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Global Infrastructure Value Strategy highlighted stocks like NextEra Energy, Inc. (NYSE:NEE), in the second quarter 2024 investor letter. NextEra Energy, Inc. (NYSE:NEE) generates, transmits, distributes, and sells electric power to retail and wholesale customers. The one-month return of NextEra Energy, Inc. (NYSE:NEE) was 4.88%, and its shares gained 47.39% of their value over the last 52 weeks. On September 26, 2024, NextEra Energy, Inc. (NYSE:NEE) stock closed at $83.46 per share with a market capitalization of $173.615 billion.
ClearBridge Global Infrastructure Value Strategy stated the following regarding NextEra Energy, Inc. (NYSE:NEE) in its Q2 2024 investor letter:
“Electric utilities were the top contributors for the quarter, with U.S. utilities NextEra Energy, Inc. (NYSE:NEE) and Public Services Enterprise Group (PEG) the lead performers. NextEra Energy is an integrated utility business with a regulated utility operating in Florida and is the largest wind business in the U.S. NextEra’s regulated business, including Florida Power & Light, serves nine million people in Florida. Shares benefited from a positive readthrough to power and renewables demand as a result of data center growth from AI.”
A utility employee connecting wires at a power station in order to distribute electricity to customers.
NextEra Energy, Inc. (NYSE:NEE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held NextEra Energy, Inc. (NYSE:NEE) at the end of the second quarter which was 72 in the previous quarter. While we acknowledge the potential of NextEra Energy, Inc. (NYSE:NEE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed NextEra Energy, Inc. (NYSE:NEE) and shared the list of best stocks in each sector in 2024. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.