ClearBridge Investments, an investment management company, released its “ClearBridge Value Equity Strategy” third quarter 2022 investor letter. A copy of the same can be downloaded here. The strategy outperformed its benchmark, the Russell 1000 Value Index, in the third quarter. Sector allocation effects and overall stock selection contributed positively to the strategy’s relative performance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.
ClearBridge Investments highlighted stocks like Alcoa Corporation (NYSE:AA) in the Q3 2022 investor letter. Headquartered in Pittsburgh, Pennsylvania, Alcoa Corporation (NYSE:AA) produces and distributes bauxite, alumina, and aluminum products. On November 7, 2022, Alcoa Corporation (NYSE:AA) stock closed at $41.51 per share. One-month return of Alcoa Corporation (NYSE:AA) was 9.67% and its shares lost 12.13% of their value over the last 52 weeks. Alcoa Corporation (NYSE:AA) has a market capitalization of $7.345 billion.
ClearBridge Investments made the following comment about Alcoa Corporation (NYSE:AA) in its Q3 2022 investor letter:
“We bought Alcoa Corporation (NYSE:AA), a leading aluminum producer, after the stock sold off over lower commodity prices. The current price of aluminum is unsustainably low, below its cost of production, despite inventories being at historic lows. We believe these depressed prices are due to the evaporation of Chinese demand resulting from its zero COVID-19 policy, but that it will likely recover over the next few quarters.
Additionally, Alcoa is leading the industry in reducing carbon emissions from its smelting process which is helping to improve its cost position relative to global competitors. Given its compelling valuation and strong free cash flow yield, we are confident in the company as it is increasingly relied upon to meet the growing structural demand from electrification and the global energy transition.”
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Alcoa Corporation (NYSE:AA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Alcoa Corporation (NYSE:AA) at the end of the second quarter which was 50 in the previous quarter.
We discussed Alcoa Corporation (NYSE:AA) in another article and shared the most undervalued value stocks to buy. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
