Edison International (EIX): The Top Individual Contributor of Clearbridge Large Cap Value Strategy
ClearBridge Investments, an investment management company, released its “ClearBridge Large Cap Value Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The third quarter experienced significant gains for U.S. equities, which recovered from a fear of slowing economic growth that had driven several asset markets into correction territory. A broad rebound was then induced by a 50 basis point interest rate drop by the Federal Reserve. The Russell 1000 Value Index generated a gain of 9.43% for the quarter. Against this backdrop, The ClearBridge Large Cap Value Strategy underperformed the benchmark Russell 1000 Value Index during the quarter. In addition, you can check the fund's top 5 holdings to determine its best picks for 2024.
ClearBridge Large Cap Value Strategy highlighted stocks like Edison International (NYSE:EIX) in the third quarter 2023 investor letter. Edison International (NYSE:EIX) generates and distributes electric power. The one-month return of Edison International (NYSE:EIX) was -2.82%, and its shares gained 26.37% of their value over the last 52 weeks. On October 10, 2024, Edison International (NYSE:EIX) stock closed at $83.01 per share with a market capitalization of $32.057 billion.
ClearBridge Large Cap Value Strategy stated the following regarding Edison International (NYSE:EIX) in its Q3 2024 investor letter:
"From a sector perspective, meanwhile, our utilities overweight was positive, with Edison International (NYSE:EIX) our top individual contributor. The company reached a tentative deal to recoup $1.7 billion of wildfire and mudslide expenses in California, bolstering its balance sheet, increasing earnings and demonstrating the favorable regulatory environment in California, benefiting both Edison as well as Sempra, our largest utility holding. Another rate-sensitive area — real estate — was the second-best sector performer as rate cuts boosted valuations in this area. Our REITs underweight, however, was a headwind during the period."
A wide aerial view of an electric power transmission facility with lines, substations, and overhead wires.
Edison International (NYSE:EIX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Edison International (NYSE:EIX) at the end of the second quarter which was 25 in the previous quarter. While we acknowledge the potential of Edison International (NYSE:EIX) 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 Edison International (NYSE:EIX) and shared the list of most undervalued renewable energy stocks to buy. In addition, please check out our hedge fund investor letters Q3 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.