ClearBridge Investments Just Bought Clarivate (CLVT) Shares, Here’s Why

ClearBridge Investments, an investment management firm, published its “Select Strategy” third quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Select Strategy underperformed its Russell 3000 Index benchmark in the third quarter. On an absolute basis, the Strategy had gains in four of the 10 sectors in which it was invested during the quarter (out of 11 sectors total). The IT and real estate sectors were the primary contributors to performance while the communication services and consumer discretionary sectors were the main detractors. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

ClearBridge Select Strategy, in its Q3 2021 investor letter, mentioned Clarivate Plc (NYSE: CLVT) and discussed its stance on the firm. Clarivate Plc is a London, United Kingdom-based analytics company with a $15.9 billion market capitalization. CLVT delivered a -2.34% return since the beginning of the year, while its 12-month returns are down by -25.25%. The stock closed at $23.16 per share on January 06, 2022.

Here is what ClearBridge Select Strategy has to say about Clarivate Plc  in its Q3 2021 investor letter:

“We took advantage of alternative asset classes to establish exposure in health care analytics firm Clarivate. Clarivate sells a range of analytics and data packages to biopharmaceutical and medical technology customers. The common stock had come under pressure due to disappointing medium-term growth guidance and a large secondary offering of convertible securities. We purchased the mandatory convertible shares, which pay an attractive yield, as we wait for the company to rebuild its credibility with investors and convert to common equity in the low $30s.”

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Based on our calculations, Clarivate Plc (NYSE: CLVT) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. CLVT was in 32 hedge fund portfolios at the end of the third quarter of 2021, compared to 41 funds in the previous quarter. Clarivate Plc (NYSE: CLVT) delivered a 7.94% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on CLVT 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.