ClearBridge Investments, an investment management firm, published its “Small Cap Strategy” first quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Small Cap Strategy outperformed its Russell 2000 Index benchmark during the first quarter. On an absolute basis, the Strategy had losses across six of the 11 sectors in which it was invested during the quarter. The leading detractors were the consumer discretionary, IT, and financial sectors, while the leading contributors were the energy and health care sectors. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Clearbridge Investments Small Cap Strategy mentioned Sunnova Energy International Inc. (NYSE:NOVA) and explained its insights for the company. Founded in 2012, Sunnova Energy International Inc. (NYSE:NOVA) is a Houston, Texas-based residential solar company with a $2.2 billion market capitalization. Sunnova Energy International Inc. (NYSE:NOVA) delivered a -30.62% return since the beginning of the year, while its 12-month returns are down by -46.70%. The stock closed at $19.37 per share on April 14, 2022.
Here is what Clearbridge Investments Small Cap Strategy has to say about Sunnova Energy International Inc. (NYSE:NOVA) in its Q1 2022 investor letter:
“We initiated a new position in Sunnova (NYSE:NOVA), in the energy sector. Sunnova is a residential solar and energy storage company that enables adoption through a network of installers with options for financing, service and broader home energy management. Rising interest rates and solar energy supply constraints weighed on the stock’s performance in the fourth quarter of 2021 but created a compelling valuation opportunity to buy this business when the market was embedding low growth expectations. We believe Sunnova will deliver value accretive growth for a much longer time, with its downside limited by the long-term, fixed-rate, high- quality contracts it has with customers.”
Our calculations show that Sunnova Energy International Inc. (NYSE:NOVA) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Sunnova Energy International Inc. (NYSE:NOVA) was in 25 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 27 funds in the previous quarter. Sunnova Energy International Inc. (NYSE:NOVA) delivered a -19.46% return in the past 3 months.
In April 2022, we published an article that includes Sunnova Energy International Inc. (NYSE:NOVA) in 11 Best Renewable Energy Stocks to Buy Right Now. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
