Investment management firm ClearBridge Investments has released its “ClearBridge Large Cap Growth Strategy” Q2 2023 Investor Letter. A copy of the same can be downloaded here. The market’s increased focus on generative AI helped mega-cap growth stocks outperform in the quarter. The strategy outperformed the benchmark Russell 1000 Growth Index throughout a high-beta-driven period dominated by megacaps. Plus, check out the fund’s top 5 holdings to discover the best stocks of 2023.
The ClearBridge Large Cap Growth Strategy highlighted stocks such as NVIDIA Corporation (NASDAQ:NVDA) in its second quarter 2023 investor letter. NVIDIA Corporation (NASDAQ:NVDA), headquartered in Santa Clara, California, offers computer graphics processors, chipsets and related multimedia software. On July 7, 2023, NVIDIA Corporation (NASDAQ: NVDA) stock closed at $425.03 per share. NVIDIA Corporation’s (NASDAQ:NVDA) one-month return was 7.65%, and the company’s stock has risen 180.51% in value over the past 52 weeks. NVIDIA Corporation (NASDAQ:NVDA) has a market capitalization of $1.5 trillion.
ClearBridge Large Cap Growth Strategy, in its second quarter 2023 investor letter, made the following comments about NVIDIA Corporation (NASDAQ:NVDA):
“Strategy’s IT stock also boosted second quarter results, driven by continued valuations of graphics chip makers.” NVIDIA Corporation (NASDAQ:NVDA) is a major beneficiary of the generative AI boom. NVIDIA is a great example of an opportunistically bought, select growth stock where our long-term hypothesis has blossomed. We started this position in the fourth quarter of 2018, recognizing that inference and training in the data center is an interesting but still nascent growth driver. We knew GPUs could be used to solve complex computing problems, but we didn’t know how quickly the training and learning efforts of Nvidia’s giant enterprise customers would hit an inflection point. The volatility in the gaming business has created an entry point into equities and we have built our positions accordingly over time. Since the end of 2021, the stock’s portfolio weight has increased from 4.5% to an early Q2 high of 7.2%, before reducing the portfolio weight to manage overall position sizing.
We will continue to monitor and adjust Nvidia’s position sizing to manage risk. Despite rapid growth, we believe the company’s long-term runway remains attractive given its strong position in the very large GPU market. Current valuations look steep, but NVIDIA has real revenue and cash flow, and long-term multiples seem more reasonable given the pricing power of GPUs. ”
Kaspar Camille Rubin – N_lrIeCWgw0 – unsplash
NVIDIA Corporation (NASDAQ:NVDA) ranks 17th on the list of the 30 hottest stocks among hedge funds. According to our database, 132 hedge fund portfolios held his NVIDIA Corporation (NASDAQ:NVDA) as of the end of Q1 2023, compared with 106 in the previous quarter.
We covered NVIDIA Corporation (NASDAQ:NVDA) in a separate article and shared a list of the best NASDAQ dividend stocks to buy. Additionally, for investor letters from hedge funds and other leading investors, visit the Hedge Fund Investor Letters Q2 2023 page.
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Disclosure: None. This article was originally published on Insider Monkey.
