ClearBridge Investments, an investment management company, released its “ClearBridge Global Infrastructure Value Strategy” first quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter infrastructure assets lagged behind global equities amid a strong rally in equities. The Strategy underperformed in the first quarter relative to the S&P Global Infrastructure Index and on a U.S. dollar basis. Overweight exposure to the rail and renewables sectors and stock selection in the energy infrastructure and airports sectors primarily dragged the strategy’s performance while, stock selection in the rail, renewables, and toll roads sectors proved beneficial. 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 Constellation Energy Corporation (NASDAQ:CEG), in the first quarter 2024 investor letter. Constellation Energy Corporation (NASDAQ:CEG) generates and sells electricity in the United States. The one-month return of Constellation Energy Corporation (NASDAQ:CEG) was 1.40%, and its shares gained 124.86% of their value over the last 52 weeks. On July 1, 2024, Constellation Energy Corporation (NASDAQ:CEG) stock closed at $205.05 per share with a market capitalization of $64.931 billion.
ClearBridge Global Infrastructure Value Strategy stated the following regarding Constellation Energy Corporation (NASDAQ:CEG) in its first quarter 2024 investor letter:
“On a regional basis, the U.S. and Canada was the top contributor for quarter, with U.S. electric utility Constellation Energy Corporation (NASDAQ:CEG) and U.S. rail operator CSX the lead performers. Constellation Energy is primarily a nuclear generation company and is the largest producer of carbon-free electricity in the U.S., serving states including New York, Illinois, Maryland, Pennsylvania and New Jersey. The company’s combined generation capacity is more than 32 GW and 90% of annual output is carbon free. Constellation has been a beneficiary of AI and subsequent power demand as its 24/7 base load nuclear generation can get premium contracts.”
A close up of a wind turbine producing electricity as the sun sets.
Constellation Energy Corporation (NASDAQ:CEG) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held Constellation Energy Corporation (NASDAQ:CEG) at the end of the first quarter which was 41 in the previous quarter. Constellation Energy Corporation (NASDAQ:CEG) reported GAAP earnings of $2.78 per share and adjusted operating earnings of $1.82 per share in the first quarter. While we acknowledge the potential of Constellation Energy Corporation (NASDAQ:CEG) 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 Constellation Energy Corporation (NASDAQ:CEG) in another article and shared the list of best utility stocks to buy. 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.
