ClearBridge Investments, an investment management firm, published its “All Cap Value Strategy” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge All Cap Value Strategy had a positive absolute return for the fourth quarter but underperformed the benchmark Russell 3000 Value Index. On an absolute basis, the Strategy posted gains in 10 of 11 sectors in which it was invested during the quarter. The main contributors to the Strategy’s performance were the materials and health care sectors. The sole detractor to the Strategy’s performance was the communication services sector. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
ClearBridge Investments All Cap Value Strategy, in its Q4 2021 investor letter, mentioned Altice USA, Inc. (NYSE:ATUS) and discussed its stance on the firm. Founded in 2001, Altice USA, Inc. (NYSE:ATUS) is a Long Island City, New York-based cable television company with a $5.7 billion market capitalization, and is currently spearheaded by its CEO, Dexter Goei. Altice USA, Inc. (NYSE:ATUS) delivered a -21.51% return since the beginning of the year, while its 12-month returns are down by -61.15%. The stock closed at $12.70 per share on April 04, 2022.
Here is what ClearBridge Investments All Cap Value Strategy has to say about Altice USA, Inc. (NYSE:ATUS) in its Q4 2021 investor letter:
“Altice, a new name in the portfolio, is also subjected to this market misconception. As a small cable operator that competes against a giant, Verizon’s Fios, in many markets, Altice has suffered slower growth compared to other cable peers and negative subscriber growth late in the year as it faced very tough pandemic-influenced subscriber adds. The result was an absolute collapse in the stock price of over 40%, which resulted in a valuation embedding permanent headwinds from bad pricing, high investment, and effectively no growth. We think these headwinds are more cyclical in nature, and that Altice will return to modest subscriber growth and a historic price increase in 2022 as the overreaction dissipates.”
Our calculations show that Altice USA, Inc. (NYSE:ATUS) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Altice USA, Inc. (NYSE:ATUS) was in 50 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 59 funds in the previous quarter. Altice USA, Inc. (NYSE:ATUS) delivered a -25.51% return in the past 3 months.
In May 2021, we published an article that includes Altice USA, Inc. (NYSE:ATUS) in the 10 Best Communication Stocks to Buy Now. 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.
