Here’s Why ClearBridge Investments Brought Stake in Baker Hughes Company (BKR)

ClearBridge Investments, an investment management company, released its “ClearBridge Select Strategy” second quarter 2022 investor letter. A copy of this letter can be downloaded here. In the second quarter, the fund underperformed its benchmark index. Stocks from IT, healthcare, industrials, and consumer discretionary posted losses during the quarter, however stocks from consumer staples and financials sectors contributed to the performance of the fund. To know about the fund’s best picks in 2022, please check its top 5 holdings.

In the letter, ClearBridge Investments discussed its portfolios. The firm holds stocks like Baker Hughes Company (NASDAQ:BKR).  Baker Hughes Company (NASDAQ:BKR) is an oil field services company, headquartered in Houston, Texas. The stock of Baker Hughes Company (NASDAQ:BKR) closed at $25.23 per share on August 3, 2022. One-month return of Baker Hughes Company (NASDAQ:BKR) was -11.38% and its shares gained 20.95% of their value over the last 52 weeks. Baker Hughes Company (NASDAQ:BKR) has a market capitalization of $25.703 billion.

Here is what ClearBridge Select Strategy specifically said about Baker Hughes Company (NASDAQ:BKR) in its second-quarter investor letter:

“Energy has proved a recent source of new ideas. Here we target evolving opportunities, companies with specific drivers toward operating improvement trading at depressed valuations. Pioneer Natural Resources (PXD) fit that narrative in 2020 when we made the oil exploration & production company a core holding. Intra-quarter, it grew into the largest holding in the Strategy. We subsequently trimmed Pioneer to reduce our direct oil exposure and rotated into natural gas with new positions in leading producer Chesapeake Energy (CHK) and drilling, services and technology supplier Baker Hughes Company (NASDAQ:BKR). Energy remains one of the tighter commodity markets on the supply side and is experiencing a sea change from taking Russia out of the market. Europe will become more reliant on U.S. natural gas, which can be sold more profitably there than domestically.”


Baker Hughes Company (NASDAQ:BKR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database 39 hedge fund portfolios held Baker Hughes Company (NASDAQ:BKR) at the end of the first quarter which was 35 in the previous quarter.

We discussed Baker Hughes Company (NASDAQ:BKR) in another article  and shared ClearBridge Investments’ views about the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

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