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Is Charles Schwab (SCHW) A Great Stock to Invest In?

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ClearBridge Investments, an investment management firm, published its “Sustainability Leaders Strategy” first quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Sustainability Leaders Strategy underperformed its Russell 3000 Index benchmark during the first quarter. On an absolute basis, the Strategy had gains in five of 10 sectors in which it was invested (out of 11 sectors total). You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

ClearBridge Investments, in its Q1 2021 investor letter, mentioned The Charles Schwab Corporation (NYSE: SCHW), and shared their insights on the company. The Charles Schwab Corporation is a Westlake, Texas-based financial services company that currently has a $141.1 billion market capitalization. Since the beginning of the year, SCHW delivered a 41.05% return, extending its 12-month gains to 74.72%. As of June 03, 2021, the stock closed at $76.01 per share.

Here is what ClearBridge Investments has to say about The Charles Schwab Corporation in its Q1 2021 investor letter:

"Higher rates also boosted Charles Schwab, specifically mortgage-backed securities yields, which represent the majority of its investment portfolio. Schwab has also seen stronger organic growth from a stronger economy and equity markets, which has led to more account openings and higher trading activity."

g-stockstudio/Shutterstock.com

Our calculations show that The Charles Schwab Corporation (NYSE: SCHW) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the first quarter of 2021, The Charles Schwab Corporation was in 76 hedge fund portfolios, compared to 61 funds in the fourth quarter of 2020. SCHW delivered a 15.31% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

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Disclosure: None. This article is originally published at Insider Monkey.