ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Strategy” second quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy outperformed the Russell 2000 Index in the second quarter. On an absolute basis, the strategy gained all 11 sectors it invested in during the quarter. IT and industrial sectors were the leading contributors while energy and utility sectors detracted. Overall stock selection improved performance on a relative basis while sector allocation had a negative impact. In addition, please check the fund’s top five holdings to know its best picks in 2023.
ClearBridge Small Cap Strategy highlighted stocks like Textainer Group Holdings Limited (NYSE:TGH) in the second quarter 2023 investor letter. Headquartered in Hamilton, Bermuda, Textainer Group Holdings Limited (NYSE:TGH) engages in the purchase, ownership, management, leasing, and disposal of a fleet of intermodal containers. On September 15, 2023, Textainer Group Holdings Limited (NYSE:TGH) stock closed at $38.84 per share. One-month return of Textainer Group Holdings Limited (NYSE:TGH) was -4.31%, and its shares gained 30.55% of their value over the last 52 weeks. Textainer Group Holdings Limited (NYSE:TGH) has a market capitalization of $1.606 billion.
ClearBridge Small Cap Strategy made the following comment about Textainer Group Holdings Limited (NYSE:TGH) in its Q2 2023 investor letter:
“The industrials sector also generated strong returns during the quarter, as stronger than expected corporate earnings and strong economic data helped to subdue recessionary fears. Textainer Group Holdings Limited (NYSE:TGH), which purchases, leases and resells marine cargo containers, saw its stock price climb after a major private equity firm announced plans to acquire a rival container leasing company for a substantial premium, shining a spotlight on the industry’s attractive valuations. With easing fears of a deep recession, signs of economic resiliency and growing optimism over an economic soft landing, we believe the supply-constrained shipping container industry will see greater demand than previously anticipated. Additionally, the company made substantial investments in containers during the COVID-19 pandemic, with the majority going into long-term leases that have bolstered the company’s excellent returns on equity. We believe that, even in the event of an extended downturn, the company continues to trade at a significant discount to its fundamental value. The market may be starting to come to the same conclusion.”
Pixabay/Public Domain
Textainer Group Holdings Limited (NYSE:TGH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Textainer Group Holdings Limited (NYSE:TGH) at the end of second quarter which was 12 in the previous quarter.
We discussed Textainer Group Holdings Limited (NYSE:TGH) in another article and shared the list of most profitable small-cap stocks. 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.