ClearBridge Investments, an investment management firm, published its “Value Equity Strategy” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Value Equity Strategy underperformed the benchmark Russell 1000 Value Index in the fourth quarter. On an absolute basis, the Strategy posted gains in 10 of 11 sectors in which it was invested during the quarter. The sole detractor from the Strategy’s performance was the communication services sector, while positive contributors included the financials and health care sectors. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
ClearBridge Investments Value Equity Strategy, in its Q4 2021 investor letter, mentioned Fluence Energy, Inc. (NASDAQ:FLNC) and discussed its stance on the firm. Founded in 2018, Fluence Energy, Inc. (NASDAQ:FLNC) is a Virginia-based global energy storage technology and services company with a $781.8 million market capitalization and is currently spearheaded by its CEO, Manuel Perez Dubuc. Fluence Energy, Inc. (NASDAQ:FLNC) delivered a 27.79% and it closed at $14.44 per share on April 04, 2022.
Here is what ClearBridge Investments Value Equity Strategy has to say about Fluence Energy, Inc. (NASDAQ:FLNC) in its Q4 2021 investor letter:
“During the quarter we participated in the initial public offering of Fluence Energy, one of the market leaders in the rapidly growing electricity storage market. Energy storage is set to become one of the key areas of investment for energy transition given the intermittency of renewables. Current estimates project spending on energy storage will grow from roughly $5 billion per year currently to $50 billion annually over the coming decades. As this spending ramps up, we expect Fluence’s revenues to grow well above 20% over the next several years and allow the business to scale profitably. Based on the IPO price, Fluence was valued at roughly 2x forward revenues and less than market multiples on cash flow and earnings by mid-decade in our base case scenario. With over 20% market share the stock is well-positioned to follow growth higher, especially if Fluence can enhance its business model with services revenues and a software offering to handle the growing complexity of an increasingly digital grid.
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Our calculations show that Fluence Energy, Inc. (NASDAQ:FLNC) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Fluence Energy, Inc. (NASDAQ:FLNC) was in 22 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 0 funds in the previous quarter. Fluence Energy, Inc. (NASDAQ:FLNC) delivered a -58.57% return in the past 3 months. You can find other 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.