ClearBridge Investments, an investment management company, released its “ClearBridge All Cap Value Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The strategy outperformed its benchmark, the Russell 3000 Value Index in the second quarter, due to strong stock selection in the IT and consumer discretionary sectors, which overcame weakness in consumer staples stocks. Despite significant market growth, the market’s breadth is dismal as the demand for AI businesses is starving the rest of the industry and raising concerns about how and when leadership will shift. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge All Cap Value Strategy highlighted stocks like American Tower Corporation (NYSE:AMT), in the second quarter 2024 investor letter. American Tower Corporation (NYSE:AMT) is a leading independent multitenant communications real estate operator. The one-month return of American Tower Corporation (NYSE:AMT) was 4.47%, and its shares gained 45.03% of their value over the last 52 weeks. On September 23, 2024, American Tower Corporation (NYSE:AMT) stock closed at $236.27 per share with a market capitalization of $110.357 billion.
ClearBridge All Cap Value Strategy stated the following regarding American Tower Corporation (NYSE:AMT) in its Q2 2024 investor letter:
“We have also watched as lower credit spreads, market volatility and the gravity of mega cap AI winners have pushed more defensive stocks lower than at any time in recent memory. American Tower Corporation (NYSE:AMT), which we also added this quarter, is a great example of a new position that has a less expansive upside, but immensely compliments our overall portfolio positioning and utility. The company, which boasts incredible fundamental stability and built-in growth and inflation protection via its customer contracts, currently trades near decade lows across a variety of valuation measures. Ultimately, we believe that the current carnage in small and mid cap stocks only plays to our advantage, and that even the slightest reduction in market concentration would position us well for strong performance.”
A wide angled view of a high-rise office building, the windows reflecting a nearby cityscape.
American Tower Corporation (NYSE:AMT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held American Tower Corporation (NYSE:AMT) at the end of the second quarter which was 56 in the previous quarter. While we acknowledge the potential of American Tower Corporation (NYSE:AMT) 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.
In another article, we discussed American Tower Corporation (NYSE:AMT) and shared the list of best beginner stocks to buy for investing in the real estate sector. In addition, please check out our hedge fund investor letters Q2 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.