Here’s What Makes American Tower (AMT) a Great Investment Pick

ClearBridge Investments, an investment management firm, published its “Large Cap Value ESG Strategy” second quarter 2022 investor letter – a copy of which can be downloaded here. The ClearBridge Large Cap Value ESG Strategy underperformed its Russell 1000 Value Index benchmark during the second quarter. The Russell 1000 Value Index declined 12.21%, outperforming its growth counterpart by over 800 basis points. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, ClearBridge Large Cap Value ESG Fund mentioned American Tower Corporation (NYSE:AMT) and explained its insights for the company. Founded in 1995, American Tower Corporation (NYSE:AMT) is a Boston, Massachusetts-based real estate investment trust company with a $123.4 billion market capitalization. American Tower Corporation (NYSE:AMT) delivered a -9.32% return since the beginning of the year, while its 12-month returns are down by -6.81%. The stock closed at $265.23 per share on August 23, 2022.

Here is what ClearBridge Large Cap Value ESG Fund has to say about American Tower Corporation (NYSE:AMT) in its Q2 2022 investor letter:

“The top contributor was our sole real estate holding American Tower (NYSE:AMT), the leading independent wireless tower operator with roughly 221,000 properties globally, including about 43,000 in the U.S., 76,000 in India and 23,000 in Brazil. The company’s business model is to lease space on its towers to predominantly wireless carriers on a long-term basis, generally ranging 5–10 years in duration, with built-in price escalators. This approach results in a stable and predictable cash flow business with high incremental margins — attractive qualities especially in volatile markets like the second quarters.”

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Our calculations show that American Tower Corporation (NYSE:AMT) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. American Tower Corporation (NYSE:AMT) was in 52 hedge fund portfolios at the end of the second quarter of 2022, compared to 50 funds in the previous quarter. American Tower Corporation (NYSE:AMT) delivered a 2.60% return in the past 3 months. 

In July 2022, we also shared another hedge fund’s views on American Tower Corporation (NYSE:AMT) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.