ClearBridge Investments, an investment management firm, published its “Global Infrastructure Income Strategy” fourth quarter 2021 investor letter – a copy of which can be downloaded here. On an absolute basis, the Strategy delivered gains across nine of the 10 sectors in which it was invested (out of 11 total) in the fourth quarter, with the electric, renewables, and gas sectors the leading contributors and the energy infrastructure sector the sole detractor. On a relative basis, measured against the S&P Global Infrastructure Index, the ClearBridge Global Infrastructure Income Strategy outperformed during the fourth quarter. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
ClearBridge Investments Global Infrastructure Income Strategy, in its Q4 2021 investor letter, mentioned FirstEnergy Corp. (NYSE:FE) and discussed its stance on the firm. Founded in 1996, FirstEnergy Corp. (NYSE:FE) is an Akron, Ohio-based electric services company with a $25.8 billion market capitalization, and is currently spearheaded by its CEO, Steven E. Strah. FirstEnergy Corp. (NYSE:FE) delivered an 8.97% return since the beginning of the year, while its 12-month returns are up by 30.64%. The stock closed at $45.35 per share on March 29, 2022.
Here is what ClearBridge Investments Global Infrastructure Income Strategy has to say about FirstEnergy Corp. (NYSE:FE) in its Q4 2021 investor letter:
“On a regional level, the Strategy’s largest exposure is in the U.S. and Canada (44%), consisting of regulated and contracted utilities (31%) and economically sensitive user-pays infrastructure (13%).
During the quarter we initiated new positions in U.S. electric utility FirstEnergy. With supply chain issues, higher housing costs, higher commodity prices and producer price inflation remaining square in the sights for 2022, we think higher inflation is a risk for global markets. We expect growth to slow to trend or below by mid-2022 and U.S.”
High-voltage power lines. Electricity distribution station. high voltage electric transmission tower. Distribution electric substation with power lines and transformers.
Our calculations show that FirstEnergy Corp. (NYSE:FE) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. FirstEnergy Corp. (NYSE:FE) was in 40 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 38 funds in the previous quarter. FirstEnergy Corp. (NYSE:FE) delivered a 10.05% return in the past 3 months.
In March 2022, we published an article that includes FirstEnergy Corp. (NYSE:FE) in the 10 Stocks US Politicians Bought Before Russia’s Attack on Ukraine. 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.
