ClearBridge Investments’ Worst Q3 Performer: Catalent (CTLT)
ClearBridge Investments, an investment management firm, published its “SMID Cap Growth Strategy” third-quarter 2022 investor letter – a copy of which can be downloaded here. During the third quarter, the ClearBridge SMID Cap Growth Strategy underperformed its Russell 2500 Growth benchmark. On an absolute basis, the Strategy had gains across four of the 10 sectors in which it was invested (out of 11 sectors total). The consumer discretionary and consumer staples sectors were the main contributors while the health care sector was the primary detractor. 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 SMID Cap Growth Strategy mentioned Catalent, Inc. (NYSE:CTLT) and explained its insights for the company. Founded in 2007, Catalent, Inc. (NYSE:CTLT) is a Franklin Township, New Jersey-based pharma corporation with a $7.6 billion market capitalization. Catalent, Inc. (NYSE:CTLT) delivered a -67.58% return since the beginning of the year, while its 12-month returns are down by -67.16%. The stock closed at $41.51 per share on November 09, 2022.
Here is what ClearBridge SMID Cap Growth Strategy has to say about Catalent, Inc. (NYSE:CTLT) in its Q3 2022 investor letter:
"With many biotechnology stocks reliant on the capital markets to help finance their operations, investor sentiment for health care companies supporting such customers declined, despite small changes in earnings trajectories for these companies. The portfolio’s worst performing stock during the quarter, Catalent (NYSE:CTLT), develops and manufactures drugs, biologics, cell and gene therapies and consumer health products. The company saw its shares derate after it missed earnings expectations partially due to a drop-off in its COVID-focused biologics business. Catalent is responding by reshuffling internal assets to increase synergies and focus on its strong non-biologic franchises, such as its high-growth and high-quality gummy vitamin business."
Photo by Myriam Zilles on Unsplash
Our calculations show that Catalent, Inc. (NYSE:CTLT) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Catalent, Inc. (NYSE:CTLT) was in 41 hedge fund portfolios at the end of the second quarter of 2022, compared to 34 funds in the previous quarter. Catalent, Inc. (NYSE:CTLT) delivered a -62.24% return in the past 3 months.
In September 2022, we also shared another hedge fund’s views on Catalent, Inc. (NYSE:CTLT) 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.
