ClearBridge Investments, an investment management firm, published its “International Growth ACWI ex-U.S. Strategy” first quarter 2022 investor letter – a copy of which can be downloaded here. During the first quarter, the ClearBridge International Growth EAFE Strategy underperformed its MSCI EAFE Index benchmark. The Strategy had losses across nine of the 10 sectors in which it was invested (out of 11 total), driven by the subsector and stock-specific allocations toward growth areas versus the benchmark. IT, health care, and industrials sectors were the primary detractors while the energy sector was the sole contributor. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, ClearBridge Investments International Growth EAFE Strategy mentioned Shopify Inc. (NYSE:SHOP) and explained its insights for the company. Founded in 2006, Shopify Inc. (NYSE:SHOP) is an Ottawa, Canada-based multinational e-commerce company with a $72.5 billion market capitalization. Shopify Inc. (NYSE:SHOP) delivered a -57.93% return since the beginning of the year, while its 12-month returns are down by -52.04%. The stock closed at $579.51 per share on April 14, 2022.
Here is what ClearBridge Investments International Growth EAFE Strategy has to say about Shopify Inc. (NYSE:SHOP) in its Q1 2022 investor letter:
“Most of our selling over the last several quarters has occurred among emerging growth companies, where we have reduced our exposure to under 5% to better manage risk. Exits from the emerging growth bucket in the quarter included ending our multiyear ownership of Shopify (NYSE:SHOP) as e-commerce acceleration drove the valuation close to our target price. The Canadian company, which we originally purchased in mid-2018 as merchants began to adopt its digital commerce enablement tools, has also embarked on more capital-intensive projects in logistics that are increasing its risk profile.”
Photo by Roberto Cortese on Unsplash
Our calculations show that Shopify Inc. (NYSE:SHOP) ranks 30th on our list of the 30 Most Popular Stocks Among Hedge Funds. Shopify Inc. (NYSE:SHOP) was in 86 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 73 funds in the previous quarter. Shopify Inc. (NYSE:SHOP) delivered a -45.55% return in the past 3 months.
In March 2022, we published an article that includes Shopify Inc. (NYSE:SHOP) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
