ClearBridge Investments, an investment management firm, published its “Global Infrastructure Value Strategy” second quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Global Infrastructure Value Strategy performed well versus the infrastructure benchmark, which underperformed global equities for the quarter. You can take a look at the fund’s top 5 holdings to have an idea about their top bets for 2021.
In the Q2 2021 investor letter of ClearBridge Investments, the fund mentioned American Tower Corporation (REIT) (NYSE: AMT) and discussed its stance on the firm. American Tower Corporation is a Boston, Massachusetts-based real estate investment trust company with a $121.3 billion market capitalization. AMT delivered an 18.78% return since the beginning of the year, while its 12-month returns are up by 9.58%. The stock closed at $266.61 per share on October 01, 2021.
Here is what ClearBridge Investments has to say about American Tower Corporation in its Q2 2021 investor letter:
“On a regional basis, the U.S. and Canada was the top contributor to quarterly performance, of which U.S. communications company American Tower was one of the lead performers. American Tower is a leading independent owner, operator and developer of wireless and broadcast communications infrastructure. The company has 41,000 sites in the U.S. and a further 139,000 sites across 19 countries, predominantly emerging markets (India 75k, Latin America 40k and Africa 18k). American Tower performed well after the U.S. network operators announced plans to deploy 5G spectrum, with investment much larger and much sooner than the market was anticipating.”
Based on our calculations, American Tower Corporation (REIT) (NYSE: AMT) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. AMT was in 55 hedge fund portfolios at the end of the first half of 2021, compared to 58 funds in the previous quarter. American Tower Corporation (REIT) (NYSE: AMT) delivered a -2.29% return in the past 3 months.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
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Disclosure: None. This article is originally published at Insider Monkey.