Here’s Why ClearBridge Large Cap Value Strategy Added Sherwin-Williams (SHW) to its Portfolio
ClearBridge Investments, an investment management company, released its “ClearBridge Large Cap Value Strategy” second quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy outperformed its Russell 1000 Value Index benchmark in the second quarter. The strategy benefited from nine of the 11 sectors in which it was invested for the quarter on an absolute basis, while overall stock selection contributed to performance on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2023.
ClearBridge Large Cap Value Strategy highlighted stocks like The Sherwin-Williams Company (NYSE:SHW) in the second quarter 2023 investor letter. Headquartered in Cleveland, Ohio, The Sherwin-Williams Company (NYSE:SHW) manufactures and distributes paints, coating, and related products. On September 14, 2023, The Sherwin-Williams Company (NYSE:SHW) stock closed at $268.07 per share. One-month return of The Sherwin-Williams Company (NYSE:SHW) was -0.77%, and its shares gained 20.99% of their value over the last 52 weeks. The Sherwin-Williams Company (NYSE:SHW) has a market capitalization of $68.934 billion.
ClearBridge Large Cap Value Strategy made the following comment about The Sherwin-Williams Company (NYSE:SHW) in its Q2 2023 investor letter:
"We were fairly active in the quarter as market dislocations allowed us to be opportunistic, while focusing on companies with stronger moats, better pricing power, more predictable long-term growth and higher returns. In the materials sector we exited PPG Industries and initiated a position in The Sherwin-Williams Company (NYSE:SHW). While both companies operate in the paint and coating industry and are benefiting from improving margins as raw material prices have come down of late, we believe Sherwin-Williams’ dominant retail footprint affords it better pricing power through the cycle. The company provided conservative 2023 guidance and has been successfully gaining market share in the pro segment. While PPG has more European and industrial exposure, Sherwin-Williams’ residential and more domestic focus should also benefit the company as housing indicators appear to be troughing. Weak housing in the face of higher mortgage rates caused Sherwin-Williams stock to sell off in the first quarter, creating a compelling investment opportunity for long-term focused fundamental investors."
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The Sherwin-Williams Company (NYSE:SHW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 78 hedge fund portfolios held The Sherwin-Williams Company (NYSE:SHW) at the end of second quarter which was 68 in the previous quarter.
We discussed The Sherwin-Williams Company (NYSE:SHW) in another article and shared the list of stocks receiving upgrades from analysts. In addition, please check out our hedge fund investor letters Q2 2023 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.
