In today’s briefing:
- Razer’s Offer Risk/Reward Ahead of the 26 April Scheme Meeting
- ClearBridge Investments SMID Cap Growth Strategy Q1 2022 Commentary
- ClearBridge Investments Select Strategy Q1 2022 Commentary
- ClearBridge Investments Global Growth Strategy Q1 2022 Commentary
- ClearBridge Investments All Cap Growth Strategy Q1 2022 Commentary
Razer’s Offer Risk/Reward Ahead of the 26 April Scheme Meeting
- The amended Cayman Islands Act is yet to become law which increases the odds that the headcount test remains for Razer Inc (1337 HK)‘s court meeting on 26 April.
- Since the despatch of the scheme document, the gross spread has narrowed to 7.6% (last close). Current deal probability implies an 80% chance of success.
- The rising deal probability negatively skews the risk/reward profile. We are hesitant to be long this trade into a scheme meeting that is too close to call.
ClearBridge Investments SMID Cap Growth Strategy Q1 2022 Commentary
- The Strategy underperformed during a pronounced rotation out of higher-growth companies due to investor de-risking and a less accommodative macro backdrop.
- We used opportunities created by heightened volatility to establish seven new positions while exiting eight other names to increase conviction in stocks with more attractive risk/reward profiles.
ClearBridge Investments Select Strategy Q1 2022 Commentary
- ClearBridge is a leading global asset manager committed to active management.
- The Strategy’s overweight in growth and smaller cap stocks caused it to endure the worst of the selling pressure facing these areas.
ClearBridge Investments Global Growth Strategy Q1 2022 Commentary
- A sharp spike in bond yields pressured growth stocks and weighed on Strategy performance against its core benchmark, where leadership was decidedly one-sided in favor of value.
- Nevertheless, we remain positive on areas like the IT sector and have largely maintained holdings in our highest-conviction ideas.
ClearBridge Investments All Cap Growth Strategy Q1 2022 Commentary
- ClearBridge is a leading global asset manager committed to active management.
- Research-based stock selection guides our investment approach, with our strategies reflecting the highest-conviction ideas of our portfolio managers.
- Recent underperformance was driven by stock selection, where earnings shortfalls impacted several names in communication services and technology.
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