Is it Still Worthy to Invest in Corporate Office Properties (OFC)?

ClearBridge Investments, an investment management firm, published its “Small Cap Value Strategy” third-quarter 2022 investor letter – a copy of which can be downloaded here. The ClearBridge Small Cap Value Strategy underperformed its Russell 2000 Value Index benchmark during the third quarter. On an absolute basis, the Strategy had losses in eight out of 11 sectors in which it was invested during the quarter. The leading detractors were the IT and financial sectors while the energy, consumer staples, and healthcare sectors were the positive contributors. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.

In its Q3 2022 investor letter, ClearBridge Small Cap Value Strategy mentioned Corporate Office Properties Trust (NYSE:OFC) and explained its insights for the company. Founded in 1988, Corporate Office Properties Trust (NYSE:OFC) is a Columbia, Maryland-based real estate investment trust company with a $5.8 billion market capitalization. Corporate Office Properties Trust (NYSE:OFC) delivered a -6.36% return since the beginning of the year, while its 12-month returns are down by -7.39%. The stock closed at $26.19 per share on November 09, 2022.

Here is what ClearBridge Small Cap Value Strategy has to say about Corporate Office Properties Trust (NYSE:OFC) in its Q3 2022 investor letter:

“The Strategy benefited from its positioning in less interest-rate-sensitive companies within the real estate sector, where the aggressive increase in rates and hawkish outlook made it the benchmark’s second worst performing sector of the quarter. Likewise, Corporate Office Properties Trust’s (NYSE:OFC) long-term leases with government agencies and contractors, particularly those focused on national security, make it less sensitive to higher rates and economic downturns than its more commercial-office peers. Although the company saw their stock price decline during the period, they outperformed the broader real estate sector.”

Photo by Andrea Davis on Unsplash

Our calculations show that Corporate Office Properties Trust (NYSE:OFC) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Corporate Office Properties Trust (NYSE:OFC) was in 10 hedge fund portfolios at the end of the second quarter of 2022, compared to 11 funds in the previous quarter. Corporate Office Properties Trust (NYSE:OFC) delivered a -5.42% return in the past 3 months.

In (date of publication), we also shared another hedge fund’s views on Corporate Office Properties Trust (NYSE:OFC) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.

 

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Disclosure: None. This article is originally published at Insider Monkey.