ClearBridge Investments, an investment management company, released its “ClearBridge Large Cap Growth Strategy” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy underperformed its benchmark index. The overall stock selection impacted the performance of the strategy in the quarter. The strategy also posted losses in nine sectors among the 11 sectors it invested in. IT and healthcare sectors were the primary detractors of the strategy. In addition, please check the fund’s top five holdings to know its best picks in 2022.
ClearBridge Investments highlighted stocks like Salesforce, Inc. (NYSE:CRM) in the Q3 2022 investor letter. Headquartered in San Francisco, California, Salesforce, Inc. (NYSE:CRM) is a technology company that provides customer relationship management technologies to connect companies and customers. On November 4, 2022, Salesforce, Inc. (NYSE:CRM) stock closed at $139.77 per share. One-month return of Salesforce, Inc. (NYSE:CRM) was -4.03% and its shares lost 54.91% of their value over the last 52 weeks. Salesforce, Inc. (NYSE:CRM) has a market capitalization of $139.77 billion.
ClearBridge Investments made the following comment about Salesforce, Inc. (NYSE:CRM) in its Q3 2022 investor letter:
“Software has been a solid long-term performer for the Strategy and a key point of differentiation versus the benchmark. But even recurring revenue businesses enabling digital transformation are not immune from the vagaries of the COVID-19 recovery. Salesforce, Inc. (NYSE:CRM) (-12.8%) has detracted from results due to slowing revenue growth driven by a combination of factors, including pull-forward of enterprise digitization demand during COVID-19, some operational missteps, and lengthening sales cycles.
We believe the company still has ample room for revenue growth across its various platforms and should benefit from budget consolidation as customers seek control over tech spending in a weakening economy. We also see significant room for margin expansion. While we have trimmed our Salesforce (CRM) exposure, we maintain confidence that the stock will rerate to a level that reflects its growth potential.”
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Salesforce, Inc. (NYSE:CRM) is in 10th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 116 hedge fund portfolios held Salesforce, Inc. (NYSE:CRM) at the end of the second quarter, which was 114 in the previous quarter.
We discussed Salesforce, Inc. (NYSE:CRM) in another article and shared the stock picks of elite hedge funds for a growth stock portfolio. In addition, please check out our hedge fund investor letters Q3 2022 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.
