ClearBridge Investments, an investment management firm, published its “Large Cap Growth Strategy” third quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Large Cap Growth Strategy underperformed its Russell 1000 Growth Index benchmark during the third quarter. On an absolute basis, the Strategy had gains across four of the eight sectors in which it was invested (out of 11 sectors total). The leading contributors to performance were in the IT and health care sectors, while the consumer discretionary and industrials sectors were detractors. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.
ClearBridge Large Cap Growth Strategy, in its Q3 2021 investor letter, mentioned Netflix, Inc. (NASDAQ: NFLX) and discussed its stance on the firm. Netflix, Inc. is a Los Gatos, California-based production company with a $239.6 billion market capitalization. NFLX delivered a -10.19% return since the beginning of the year, while its 12-month returns are up by 6.01%. The stock closed at $541.06 per share on January 07, 2022.
Here is what ClearBridge Large Cap Growth Strategy has to say about Netflix, Inc. in its Q3 2021 investor letter:
“Within the broader digital services space, we recently initiated a position in Netflix where we believe the risk/reward is compelling after the stock traded sideways over the last year due to muted recent subscriber growth resulting from COVID-19-related content production delays. Netflix operates a high-quality subscription business with room for continued growth in a large addressable market. We believe Netflix has a strategic advantage in scaling its business given its large content library and lead versus peers in establishing local content studios and partnerships. The company is also entering the video game market with a focus on mobile games, which could open up new growth opportunities and lower subscriber churn over time. Despite still-heavy content investments, Netflix was free cash flow positive in 2020 and is expected to grow free cash flows in 2022 and beyond. In addition, its progress on margin expansion remains underappreciated.”
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Based on our calculations, Netflix, Inc. (NASDAQ: NFLX) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. NFLX was in 106 hedge fund portfolios at the end of the third quarter of 2021, compared to 113 funds in the previous quarter. Netflix, Inc. (NASDAQ: NFLX) delivered a -14.48% return in the past 3 months.
In December 2021, we also shared another hedge fund’s views on NFLX in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.
Disclosure: None. This article is originally published at Insider Monkey.
