ClearBridge Investments, an investment management company, released its “ClearBridge Large Cap Growth Strategy” first quarter 2024 investor letter. A copy of the same can be downloaded here. The Strategy outperformed its benchmark, the Russell 1000 Growth Index, in the quarter due to active management of its mega-cap exposure and strong stock selection in the growth universe. The Strategy posted gains across the 10 sectors in which it was invested, on an absolute basis. Overall stock selection contributed to performance on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Large Cap Growth Strategy featured stocks like PayPal Holdings, Inc. (NASDAQ:PYPL) in the first quarter 2024 investor letter. Headquartered in San Jose, California, PayPal Holdings, Inc. (NASDAQ:PYPL) is a technology platform that enables digital payments. On April 4, 2024, PayPal Holdings, Inc. (NASDAQ:PYPL) stock closed at $64.54 per share. One-month return of PayPal Holdings, Inc. (NASDAQ:PYPL) was 9.37%, and its shares lost 13.90% of their value over the last 52 weeks. PayPal Holdings, Inc. (NASDAQ:PYPL) has a market capitalization of $69.17 billion.
ClearBridge Large Cap Growth Strategy stated the following regarding PayPal Holdings, Inc. (NASDAQ:PYPL) in its first quarter 2024 investor letter:
“Given our view that the overall market looks expensive, mostly due to mega cap valuations, the low likelihood that technology can continue to deliver well above market returns and an expected slowdown in economic growth, risk management has guided our recent positioning activity. We have been consistently trimming from the select bucket and redeploying into undervalued stable and cyclical names, while also being cognizant of position sizing to maintain the latitude to add to names when prices become attractive.
We were also active in adding to stable bucket investments PayPal Holdings, Inc. (NASDAQ:PYPL) and UnitedHealth Group where negative near-term sentiment led to more attractive risk/reward profiles. We added to electronic payments provider PayPal as we have growing confidence that new CEO Alex Chriss’s strategic focus areas can improve the company’s performance, particularly in the key branded business. We added to our UnitedHealth position after shares were pressured due to fears over competition among managed care providers and rising medical loss ratios in the industry. We believe the company will be able to “re-price” for higher medical costs, making this pressure transitory and we see competitive concerns as overblown.”
A consumer in a cafe paying for goods using a mobile payment app.
PayPal Holdings, Inc. (NASDAQ:PYPL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, PayPal Holdings, Inc. (NASDAQ:PYPL) was held by 87 hedge fund portfolios, compared to 78 in the previous quarter, according to our database.
We discussed PayPal Holdings, Inc. (NASDAQ:PYPL) in another article and shared the list of that hedge funds were talking about 3-4 months ago. In addition, please check out our hedge fund investor letters Q1 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.
