ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Value Strategy” first quarter 2024 investor letter. A copy of the letter can be downloaded here. The firm focuses on companies with strong balance sheets and attractive cash flows with compelling valuations rather than following market trends. The strategy outperformed the benchmark Russell 2000 Value Index in the first quarter and generated gains across 11 sectors in which it was invested, on an absolute basis. Overall stock selection effects contributed to the performance on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Small Cap Value Strategy highlighted stocks like SMART Global Holdings, Inc. (NASDAQ:SGH), in the first quarter 2024 investor letter. SMART Global Holdings, Inc. (NASDAQ:SGH) is a memory-focused company, that designs and develops enterprise solutions. The one-month return of SMART Global Holdings, Inc. (NASDAQ:SGH) was 14.16%, and its shares lost 12.23% of their value over the last 52 weeks. On June 18, 2024, SMART Global Holdings, Inc. (NASDAQ:SGH) stock closed at $23.62 per share with a market capitalization of $1.235 billion.
ClearBridge Small Cap Value Strategy stated the following regarding SMART Global Holdings, Inc. (NASDAQ:SGH) in its first quarter 2024 investor letter:
“For the Strategy in the quarter, stock selection in the IT sector was the largest contributor to relative performance. Electronic memory and LED manufacturer SMART Global Holdings, Inc. (NASDAQ:SGH) proved our second-best-performing holding, rebounding from a disappointing fourth quarter. Contrary to the lowered expectations that management had previously guided to for its high-performance computing business, SMART Global saw accelerated demand beyond what both management and the market had previously anticipated, leading to improved margins and unexpectedly higher quarterly earnings.”
An array of LED lights illuminating a video wall, showcasing the company’s capabilities.
SMART Global Holdings, Inc. (NASDAQ:SGH) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held SMART Global Holdings, Inc. (NASDAQ:SGH) at the end of the first quarter which was 20 in the previous quarter. In the latest quarter, SMART Global Holdings, Inc. (NASDAQ:SGH) generated revenue of $285 million, which was in line with the midpoint of its guidance. While we acknowledge the potential of SMART Global Holdings, Inc. (NASDAQ:SGH) 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.
In another article, we discussed SMART Global Holdings, Inc. (NASDAQ:SGH) and shared Meridian Contrarian Fund’s views on the company in the second quarter. 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.
