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 Marsh & McLennan Companies, Inc. (NYSE:MMC) in the Q3 2022 investor letter. Headquartered in New York, New York, Marsh & McLennan Companies, Inc. (NYSE:MMC) is a global professional services company. On November 4, 2022, Marsh & McLennan Companies, Inc. (NYSE:MMC) stock closed at $160.37 per share. One-month return of Marsh & McLennan Companies, Inc. (NYSE:MMC) was 4.14% and its shares lost 2.21% of their value over the last 52 weeks. Marsh & McLennan Companies, Inc. (NYSE:MMC) has a market capitalization of $79.545 billion.
ClearBridge Investments made the following comment about Marsh & McLennan Companies, Inc. (NYSE:MMC) in its Q3 2022 investor letter:
“The proceeds of these actions are adding to our cash position or being directed to additions among our stable growth companies, with the newest being the purchase of Marsh & McLennan Companies, Inc. (NYSE:MMC) in the financials sector. Marsh is the world’s largest insurance broker and operates two consulting businesses, Mercer and Oliver Wyman. The company benefits from attractive insurance industry dynamics, durable underlying revenue drivers and a strong margin/free cash flow profile.
It has demonstrated the ability to grow revenue in excess of GDP growth, particularly during periods of strong property and casualty commercial industry pricing like the current environment, while experiencing more modest revenue declines than overall GDP during past recessions. The insurance brokerage segment does not take underwriting risk but instead earns fees and commissions based on services provided, resulting in low capital intensity and strong free cash flow generation.
In aggregate, we believe MMC’s business will be durable during recessionary periods. Risks include a valuation on the higher end of the stock’s historical range, limited exposure to changes in GDP growth and the likelihood that shares would lag balance sheet intensive financials in a rebound.”
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Marsh & McLennan Companies, Inc. (NYSE:MMC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Marsh & McLennan Companies, Inc. (NYSE:MMC) at the end of the second quarter which was 41 in the previous quarter.
We discussed Marsh & McLennan Companies, Inc. (NYSE:MMC) in another article and shared L1 Capital International’s views on the company. 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.
