ClearBridge Investments, an investment management firm, released its first-quarter 2024 “Mid Cap Strategy” investor letter. A copy of the same can be downloaded here. Large-cap AI beneficiaries led markets in the first quarter, with the Russell 1000 Index returning 10.30%. Meanwhile, midcaps saw a boost from a wider market, with the Russell Midcap Index gaining 8.60%. The Strategy underperformed its Russell Midcap Index benchmark in the first quarter. The strategy gained across nine of the 11 sectors in which it was invested, on an absolute basis. Industrials and financials sectors were the leading contributors while consumer discretionary and IT sectors detracted. Overall stock selection and sector allocation effects detracted from performance on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Mid Cap Strategy highlighted stocks like Alexandria Real Estate Equities, Inc. (NYSE:ARE), in the first quarter 2024 investor letter. Alexandria Real Estate Equities, Inc. (NYSE:ARE) is a mission-driven life science REIT. The one-month return of Alexandria Real Estate Equities, Inc. (NYSE:ARE) was -0.47%, and its shares gained 2.10% of their value over the last 52 weeks. On June 26, 2024, Alexandria Real Estate Equities, Inc. (NYSE:ARE) stock closed at $115.68 per share with a market capitalization of $20.243 billion.
ClearBridge Mid Cap Strategy stated the following regarding Alexandria Real Estate Equities, Inc. (NYSE:ARE) in its first quarter 2024 investor letter:
“We also added to existing holdings in sectors we feel are well-positioned to outperform as they rebound off current lows. This included Alexandria Real Estate Equities, Inc. (NYSE:ARE), which should benefit from a narrowing in the spread between capitalization rates and financing costs, and a potential relief in funding costs as interest rates move lower.”
A biopharmaceutical research laboratory filled with scientists, illuminated by the glow of their equipment.
Alexandria Real Estate Equities, Inc. (NYSE:ARE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Alexandria Real Estate Equities, Inc. (NYSE:ARE) at the end of the first quarter which was 31 in the previous quarter. While we acknowledge the potential of Alexandria Real Estate Equities, Inc. (NYSE:ARE) 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.
We discussed Alexandria Real Estate Equities, Inc. (NYSE:ARE) in another article and shared the list of biggest real estate companies in the US in 2024. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
