Here’s What Makes Cisco Systems (CSCO) A Great Long-Term Investment

ClearBridge Investments, an investment management firm, published its “Large Cap Value Strategy” third quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Large Cap Value Strategy outperformed its Russell 1000 Value Index benchmark during the third quarter. On an absolute basis, the Strategy had gains in six of 11 sectors in which it was invested for the quarter. The strongest contributions came from the financials and consumer discretionary sectors. The industrials, materials, and health care 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 Large Cap Value Strategy, in its Q3 2021 investor letter, mentioned Cisco Systems, Inc. (NASDAQ: CSCO) and discussed its stance on the firm. Cisco Systems, Inc. is a San Jose, California-based networking hardware company with a $258.3 billion market capitalization. CSCO delivered a -3.35% return since the beginning of the year, while its 12-month returns are up by 39.27%. The stock closed at $61.25 per share on January 03, 2022

Here is what ClearBridge Large Cap Value Strategy has to say about Cisco Systems, Inc.  in its Q3 2021 investor letter:

“We reinvested a portion of the proceeds into existing holding Cisco Systems, which also has highly valuable technology and an improving secular growth story with its leading position in core networking hardware, as well as in its growing software and services business. Cisco has refocused on winning share in the large and growing hyperscale market and has been investing aggressively in R&D to support growth. We believe Cisco has found new legs after previously ceding some growth opportunities in cloud while maintaining its strong presence in the carrier and enterprise markets. Cisco boasts a strong balance sheet and accelerating multiyear growth while trading at a modest multiple of earnings.”

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Based on our calculations, Cisco Systems, Inc. (NASDAQ: CSCO) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. CSCO was in 63 hedge fund portfolios at the end of the third quarter of 2021, compared to 60 funds in the previous quarter. Cisco Systems, Inc. (NASDAQ: CSCO) delivered an 11.99% return in the past 3 months.

Just last month, we also shared another hedge fund’s views on CSCO 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.