Should You Consider Selling Western Alliance Bancorporation (WAL)?

ClearBridge Investments, an investment management company, released its “ClearBridge SMID Cap Growth Strategy” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the strategy underperformed the Russell 2500 Growth benchmark. On an absolute basis, the strategy gained in six of the 10 sectors it was invested in during the quarter. The IT, industrials, and healthcare sectors were the leading contributors while the financials and energy detracted from the performance. Allocation effects contributed in relative terms but were offset by stock selection. In addition, please check the fund’s top five holdings to know its best picks in 2023.

ClearBridge SMID Cap Growth Strategy highlighted stocks like Western Alliance Bancorporation (NYSE:WAL) in the first quarter 2023 investor letter. Headquartered in Phoenix, Arizona, Western Alliance Bancorporation (NYSE:WAL) is a bank holding company. On May 12, 2023, Western Alliance Bancorporation (NYSE:WAL) stock closed at $27.47 per share. One-month return of Western Alliance Bancorporation (NYSE:WAL) was -16.30%, and its shares lost 62.81% of their value over the last 52 weeks. Western Alliance Bancorporation (NYSE:WAL) has a market capitalization of $3.009 billion.

ClearBridge SMID Cap Growth Strategy made the following comment about Western Alliance Bancorporation (NYSE:WAL) in its Q1 2023 investor letter:

“We sold our investment in Western Alliance Bancorporation (NYSE:WAL), in the financials sector, after considerable debate. The company provides various banking products and related services primarily in Arizona, California, and Nevada. We underappreciated the risk of rapid depositor exodus at other financial companies in the wake of the collapse of SIVB, which became engulfed by depositor outflows. Although we believe that policy response was solid, with depositor protection and liquidity programs for similarly pressured institutions, our investment in Western Alliance Bancorp became substantially higher risk and more volatile than we had imagined.”

Western Alliance Bancorporation (NYSE:WAL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Western Alliance Bancorporation (NYSE:WAL) at the end of the fourth quarter which was 25 in the previous quarter.

We discussed Western Alliance Bancorporation (NYSE:WAL) in another article and shared the list of cheap growth stocks to buy. In addition, please check out our hedge fund investor letters Q1 2023 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.