ClearBridge Investments, an investment management company, released its “ClearBridge Global Growth Strategy” first quarter 2024 investor letter. A copy of the letter can be downloaded here. During the first quarter, global equities continued to move higher fueled by improving investor sentiment, better economic data in the U.S., rate cuts beginning in Europe, and confidence in the Japanese economy. The Benchmark MSCI All Country World Index rose by 8.20%, driven by strong performance in the U.S. The S&P 500 Index surged by 10.56%, while the MSCI EAFE Index increased by 5.79%. Growth stocks saw a strong increase at the beginning of the year, buoyed by the expectation of a continued decrease in bond yields from their 2023 high. Against this backdrop, the strategy outperformed its benchmark for the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Global Growth Strategy highlighted stocks like Broadcom Inc. (NASDAQ:AVGO) in the first quarter 2024 investor letter. Broadcom Inc. (NASDAQ:AVGO) designs and develops various semiconductor devices. Broadcom Inc.’s (NASDAQ:AVGO) one-month return was 16.71%, and its shares gained 84.56% of their value over the last 52 weeks. On June 26, 2024, Broadcom Inc. (NASDAQ:AVGO) stock closed at $1,592.00 per share with a market capitalization of $741.057 billion.
ClearBridge Global Growth Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its first quarter 2024 investor letter:
“Among secular growth names, Broadcom Inc. (NASDAQ:AVGO) was another notable addition. Through organic growth and accretive acquisitions, Broadcom has developed into one of the largest global technology providers serving a number of industries with its semiconductor and software products. The company generates high levels of earnings and free cash flow, which will be driven in the coming years by revenue growth and margin expansion due to the acquisition of VMware and strong adoption of the Broadcom’s AI custom silicon chips. The acquisition of VMware is off to a good start and has shifted the business mix to 60% software and 40% semiconductors, enhancing growth prospects while also providing greater downside protection from higher recurring revenue.”
A technician working at a magnified microscope, developing a new integrated circuit.
Broadcom Inc. (NASDAQ:AVGO) is in 15th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 115 hedge fund portfolios held Broadcom Inc. (NASDAQ:AVGO) at the end of the first quarter which was 91 in the previous quarter. Consolidated net revenue of Broadcom Inc. (NASDAQ:AVGO) in the fiscal second quarter of 2024 was $12.5 billion, an increase of 43% year-on-year. While we acknowledge the potential of Broadcom Inc. (NASDAQ:AVGO) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
We discussed Broadcom Inc. (NASDAQ:AVGO) in another article and shared the list of AI stocks big tech funds are buying. In addition, please check out our hedge fund investor letters Q1 2024 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.
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