ClearBridge Investments, an investment management company, published its “ClearBridge Small Cap Value Strategy” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the strategy outperformed the Russell 2000 Value Index benchmark. Consumer staples and utility sectors contributed positively to the fund’s performance while the financials and industrial sectors were the main performance detractors. On an absolute basis, the fund faced losses in all the 11 sectors it invested in. You can check the top 5 holdings of the fund to know its best picks in 2022.
In the letter, ClearBridge Investments discussed stocks like Enact Holdings, Inc. (NASDAQ:ACT). Headquartered in Raleigh, North Carolina, Enact Holdings, Inc. (NASDAQ:ACT) is a mortgage insurance company. The stock of Enact Holdings, Inc. (NASDAQ:ACT) closed at $26.46 per share on August 19, 2022. One-month return of Enact Holdings, Inc. (NASDAQ:ACT) was 18.44%, and its shares gained 28.01% of their value over the last 52 weeks. Enact Holdings, Inc. (NASDAQ:ACT) has a market capitalization of $4.309 billion.
Here’s how ClearBridge Investments mentioned Enact Holdings, Inc. (NASDAQ:ACT) in the Q2, 2022 investor letter:
“We exited our position in Enact Holdings, Inc. (NASDAQ:ACT), in the financials sector, which operates as a private mortgage insurance company. We purchased the company at its initial public offering as we felt it was trading at a discount to its peers within the compelling private mortgage insurance industry. We believe this value gap has been narrowing since its IPO and finally reached our fair value assessment during the quarter. As a result, we exited the position and redeployed the proceeds from the sale into higher-quality stocks with greater liquidity, which we see as longer-term value creators.”
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Although ClearBridge Investments invested in Enact Holdings, Inc. (NASDAQ:ACT), it is not on the list of 30 Most Popular Stocks Among Hedge Funds. At the end of the first quarter, Enact Holdings, Inc. (NASDAQ:ACT) was held by 10 hedge funds compared to 16 in the previous quarter.
We discussed Enact Holdings, Inc. (NASDAQ:ACT) in another article and shared Gator Capital Management’s Views on the company. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.
Disclosure: None. This article is originally published at Insider Monkey.