Here’s Why ClearBridge Investments Sold its Ecolab (ECL) Position

ClearBridge Investments, an investment management firm, published its “Global Growth Strategy” fourth quarter 2021 investor letter – a copy of which can be downloaded here. During the fourth quarter, the ClearBridge Global Growth Strategy outperformed its MSCI ACWI benchmark. The Strategy delivered gains across eight of the nine sectors in which it was invested (out of 11 total), with the information technology (IT) and industrials sectors the primary contributors. The communication services sector was the sole detractor. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

ClearBridge Investments Global Growth Strategy, in its Q4 2021 investor letter, mentioned Ecolab Inc. (NYSE:ECL) and discussed its stance on the firm. Founded in 1923, Ecolab Inc. (NYSE:ECL) is a Saint Paul, Minnesota-based food safety company with a $51.6 billion market capitalization, and is currently spearheaded by its CEO, Christophe Beck. Ecolab Inc. (NYSE:ECL) delivered a -23.11% return since the beginning of the year, while its 12-month returns are down by -16.82%. The stock closed at $180.37 per share on April 01, 2022.

Here is what ClearBridge Investments Global Growth Strategy has to say about Ecolab Inc. (NYSE:ECL) in its Q4 2021 investor letter:

“We also sold and trimmed several names in the emerging market and emerging growth areas, to manage risk and pursue growth companies with a better long-term risk/reward. We also closed out of hygiene services and supplies provider Ecolab due to concerns over how long it will take for it to pass on higher prices in a high-inflation environment as well as its exposure to industries such as hospitality and industrial manufacturing, which are still suffering volume problems due to the lingering effects of COVID-19.

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Our calculations show that Ecolab Inc. (NYSE:ECL) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Ecolab Inc. (NYSE:ECL) was in 42 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 39 funds in the previous quarter. Ecolab Inc. (NYSE:ECL) delivered a -23.11% return in the past 3 months.

In March 2022, we published an article that includes Ecolab Inc. (NYSE:ECL) in the 10 Dividend Stocks Better Than Cryptocurrencies. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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