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Should You Consider Investing in Taiwan Semiconductor (TSM)?

·2 min read

ClearBridge Investments, an investment management firm, published its “International Growth EAFE Strategy” second quarter 2022 investor letter – a copy of which can be downloaded here. During the second quarter, the ClearBridge International Growth EAFE Strategy performed in line with its MSCI EAFE Index benchmark. The Strategy had losses across the 10 sectors in which it was invested (out of 11 total). The information technology (IT) and industrials sectors were the primary detractors. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, ClearBridge International Growth EAFE Portfolio mentioned Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and explained its insights for the company. Founded in 1987, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Hsinchu, Taiwan-based semiconductor manufacturing company with a $458.5 billion market capitalization. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) delivered a -26.51% return since the beginning of the year, while its 12-month returns are down by -25.83%. The stock closed at $88.42 per share on August 04, 2022.

Here is what ClearBridge International Growth EAFE Portfolio has to say about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q2 2022 investor letter:

"Disciplined selling is a key component of our risk-based approach, especially among companies with cyclical growth drivers. We have seen good success over the last several years from our semiconductor exposure but have been taking profits in companies such as, this quarter in Taiwan Semiconductor (NYSE:TSM) to reduce overall industry exposure. Given the exceptional sets of circumstances of semi shortages, double ordering and good growth in end market products including personal electronics and even data centers, we believe a neutral market position to this industry within the tech sector is appropriate."

Semiconductor
Semiconductor

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Our calculations show that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was in 81 hedge fund portfolios at the end of the second quarter of 2022, compared to 72 funds in the previous quarter. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) delivered a -4.05%% return in the past 3 months.

In July 2022, we also shared another hedge fund’s views on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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