ClearBridge Investments, an investment management firm, released its first-quarter 2024 “Mid Cap Strategy” investor letter. A copy of the same can be downloaded here. Large-cap AI beneficiaries led markets in the first quarter, with the Russell 1000 Index returning 10.30%. Meanwhile, midcaps saw a boost from a wider market, with the Russell Midcap Index gaining 8.60%. The Strategy underperformed its Russell Midcap Index benchmark in the first quarter. The strategy gained across nine of the 11 sectors in which it was invested, on an absolute basis. Industrials and financials sectors were the leading contributors while consumer discretionary and IT sectors detracted. Overall stock selection and sector allocation effects detracted from performance on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Mid Cap Strategy highlighted stocks like NCR Voyix Corporation (NYSE:VYX), in the first quarter 2024 investor letter. NCR Voyix Corporation (NYSE:VYX) offers various software and services operate through Retail; Restaurants; and Digital Banking segments. The one-month return of NCR Voyix Corporation (NYSE:VYX) was -4.60%, and its shares lost 18.65% of their value over the last 52 weeks. On June 26, 2024, NCR Voyix Corporation (NYSE:VYX) stock closed at $12.62 per share with a market capitalization of $1.805 billion.
ClearBridge Mid Cap Strategy stated the following regarding NCR Voyix Corporation (NYSE:VYX) in its first quarter 2024 investor letter:
“Stock selection in the IT sector also weighed on performance. Investor excitement for AI has driven outperformance in hypergrowth companies but weighed on several of our holdings with more conservative outlooks, which are typically appropriate this early in the year. This included NCR Voyix Corporation (NYSE:VYX), which provides software, consulting and technology services for digital commerce and automatic teller machines (ATMs). Under new direction since the spinoff of NCR Atleos in the fourth quarter of 2023, the stock is still looking for solidification of its investor base. However, we are encouraged by the company’s focus on recurring revenue streams, which should allow it to grow at an attractive pace. Additionally, we believe that NCR Voyix’s current valuation is approximately equivalent to the value of its digital banking segment alone, which should merit further upward price movement.”
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NCR Voyix Corporation (NYSE:VYX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held NCR Voyix Corporation (NYSE:VYX) at the end of the first quarter which was 40 in the previous quarter. The first quarter total normalized revenue of VYX was $858 million, down approximately 3%, caused by a decline in hardware revenue. While we acknowledge the potential of NCR Voyix Corporation (NYSE:VYX) 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 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.
