ClearBridge Investments, an investment management company, released its “ClearBridge Value Equity Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The strategy outperformed its benchmark, the Russell 1000 Value Index, in the fourth quarter. In the quarter, the strategy gained in 10 of the 11 sectors it was invested in on an absolute basis. The energy and healthcare sectors were the leading contributors however the communication services sector detracted from the performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.
ClearBridge Value Equity Strategy highlighted stocks like Noble Corporation Plc (NYSE:NE) in the Q4 2022 investor letter. Based in Altrincham, the United Kingdom, Noble Corporation Plc (NYSE:NE) is an offshore drilling contractor. On March 1, 2023, Noble Corporation Plc (NYSE:NE) stock closed at $43.47 per share. One-month return of Noble Corporation Plc (NYSE:NE) was 11.66%, and its shares gained 48.16% of their value over the last 52 weeks. Noble Corporation Plc (NYSE:NE) has a market capitalization of $5.843 billion.
ClearBridge Value Equity Strategy made the following comment about Noble Corporation Plc (NYSE:NE) in its Q4 2022 investor letter:
“As mentioned, we remain very positive on energy given the structural global shortage. However, with the cost structure of shale rising from higher services costs and well productivity falling, we made the decision to pivot from shorter-cycle shale production to longer-cycle conventional oil. We believe the current environment suggests that pricing power in energy services will continue to improve while the demand for offshore oil will increase. We invested in Noble Corporation Plc (NYSE:NE), in the energy sector, an offshore drilling contractor that targets ultra-deepwater and high-specification jackup markets, which we believe will be a major beneficiary of this shift. After emerging from bankruptcy caused by the recent severe downcycle, Noble has a recapitalized balance sheet moving into a positive pricing cycle that will drive dramatic growth in earnings and free cash flow. Like other parts of energy, the nightmare of the last cycle is reinforcing capital discipline and a focus on free cash flow rather than growth. We believe this subsequent longer duration cycle is not reflected in Noble’s current stock price, and long-term performance will be supported by growing shareholder returns from dividends and buybacks while maintaining a strong balance sheet.”
Noble Corporation Plc (NYSE:NE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held Noble Corporation Plc (NYSE:NE) at the end of the fourth quarter which was 32 in the previous quarter.
We discussed Noble Corporation Plc (NYSE:NE) in another article and shared the list of best stocks to buy according to Don Morgan’s Brigade Capital. In addition, please check out our hedge fund investor letters Q4 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.
