In today’s briefing:
- SPX Hard Close as Defensives Begin to Bend
- Razer’s Offer Risk/Reward Ahead of the 26 April Scheme Meeting
- ClearBridge Investments Global Infrastructure Income Strategy Q1 2022 Commentary
- ClearBridge Investments SMID Cap Growth Strategy Q1 2022 Commentary
- ClearBridge Investments Global Infrastructure Value Strategy Q1 2022 Commentary
- ClearBridge Investments Global Growth Strategy Q1 2022 Commentary
- ClearBridge Investments Select Strategy Q1 2022 Commentary
- ClearBridge Investments All Cap Growth Strategy Q1 2022 Commentary
SPX Hard Close as Defensives Begin to Bend
- SPX closing on Friday’s lows after an impulsive drop sets a more bearish tone for an undershoot barring an impressive recovery.
- The undertone of the market shifted on Friday as defensive sectors took a hit. If this continues it would induce a broader market sell off (bigger breakdown).
- Russell 2000 1,900 is the level to watch to lead a harder US cycle decline followed by NDX 13k dual lows. Cycle inflection timeline.
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 Global Infrastructure Income Strategy Q1 2022 Commentary
- ClearBridge is a leading global asset manager committed to active management.
- Strong outperformance of infrastructure versus global equities comes against a backdrop of rising rates, contracting balance sheets, limited fiscal response, elevated geopolitical risk and potentially slowing global growth.
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 Global Infrastructure Value Strategy Q1 2022 Commentary
- Energy infrastructure benefited from higher natural gas prices, utilities outperformed as market volatility spiked, while communications companies trailed amid rising bond yields.
- Geopolitical risks, ongoing COVID-19 disruption, supply chain issues and high inflation continue to reduce expectations for economic growth, although a recession is still not our base case.
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 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 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.
Before it’s here, it’s on Smartkarma
