Should You Invest Your Savings in Datadog (DDOG)?

ClearBridge Investments, an investment management firm, published its “Mid Cap Growth Strategy” third quarter 2021 investor letter – a copy of which can be downloaded here. During the third quarter, the ClearBridge Mid Cap Growth Strategy outperformed the benchmark Russell Midcap Growth Index. On an absolute basis, the Strategy had gains across seven of the 10 sectors in which it was invested during the quarter (out of 11 sectors total), with the IT and health care sectors the leading contributors. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

ClearBridge Mid Cap Growth Strategy, in its Q3 2021 investor letter, mentioned Datadog, Inc. (NASDAQ: DDOG) and discussed its stance on the firm. Datadog, Inc. is a New York, New York-based cybersecurity company with a $45.4 billion market capitalization. DDOG delivered a -18.30% return since the beginning of the year, while its 12-month returns are up by 59.33%. The stock closed at $145.52 per share on January 05, 2022.

Here is what ClearBridge Mid Cap Growth Strategy has to say about Datadog, Inc.  in its Q3 2021 investor letter:

“The ClearBridge Mid Cap Growth Strategy delivered positive absolute performance and outperformed the benchmark in the third quarter, with the primary differentiator being stock selection among our IT holdings. The tech names in the portfolio gained 10.1% for the quarter compared to a 2.2% gain for tech in the benchmark. Most of the heavy lifting was done by enterprise software holdings that are helping businesses analyze activity and execute more efficiently, such as Datadog. The leading contributors to absolute returns during the third quarter included Datadog.”

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Based on our calculations, Datadog, Inc. (NASDAQ: DDOG) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. DDOG was in 62 hedge fund portfolios at the end of the third quarter of 2021, compared to 56 funds in the previous quarter. Datadog, Inc. (NASDAQ: DDOG) delivered a 1.54% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on DDOG in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

Disclosure: None. This article is originally published at Insider Monkey.