Should You Exit TE Connectivity Ltd. (TEL) Due to a Downturn in the Auto Cycle?

ClearBridge Investments, an investment management company, released its “ClearBridge Sustainability Leaders Strategy” second quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy underperformed its benchmark, the Russell 3000 Index, in the quarter.  The strategy gained seven out of 10 sectors in which it invested during the quarter, on an absolute basis. IT and industrials sectors were the leading contributors while consumer discretionary, health care and utilities sectors detracted. Overall stock selection detracted on a relative basis. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

ClearBridge Sustainability Leaders Strategy highlighted stocks like TTE Connectivity Ltd. (NYSE:TEL) in the second quarter 2023 investor letter. Based in Schaffhausen, Switzerland, TE Connectivity Ltd. (NYSE:TEL) is a connectivity and sensor solutions manufacturer. On October 3, 2023, TE Connectivity Ltd. (NYSE:TEL) stock closed at $122.23 per share. One-month return of TE Connectivity Ltd. (NYSE:TEL) was -6.02%, and its shares gained 3.39% of their value over the last 52 weeks. TE Connectivity Ltd. (NYSE:TEL) has a market capitalization of $38.469 billion.

ClearBridge Sustainability Leaders Strategy made the following comment about TE Connectivity Ltd. (NYSE:TEL) in its Q2 2023 investor letter:

“Along the same vein, we exited TE Connectivity Ltd. (NYSE:TEL), a leading supplier of connectors and sensors. Due to heavy exposure to the auto end market, the company faces risk from a downturn in the auto cycle as well as the economy overall.”

A technician assembling a sensor on an automated assembly line. Editorial photo for a financial news article. 8k. –ar 16:9

TE Connectivity Ltd. (NYSE:TEL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held TE Connectivity Ltd. (NYSE:TEL) at the end of second quarter which was 29 in the previous quarter.

We discussed TE Connectivity Ltd. (NYSE:TEL) in another article and shared the list of biggest technology companies. In addition, please check out our hedge fund investor letters Q2 2023 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.