Investment management firm ClearBridge Investments has released its “ClearBridge Global Growth Strategy” Investor Letter for Q1 2024. A copy of the letter can be downloaded here. Global stocks continued to rise in the first quarter, supported by improving investor sentiment, improved U.S. economic data, interest rate cuts that have begun in Europe, and confidence in the Japanese economy. The benchmark MSCI All Country World Index rose 8.20%, driven by strong performance in the United States. The S&P 500 Index surged 10.56%, while the MSCI EAFE Index rose 5.79%. Growth stocks saw a strong rally at the start of the year, buoyed by the expectation of continued declines in bond yields from their 2023 highs. Against this backdrop, the strategy outperformed its benchmark for the quarter. Additionally, to find out our best picks for 2024, check out the fund’s top five holdings.
ClearBridge Global Growth Strategy highlighted stocks such as TransDigm Group Incorporated (NYSE:TDG) in its Q1 2024 investor letter. Headquartered in Cleveland, Ohio, TransDigm Group Incorporated (NYSE:TDG) is an aircraft parts manufacturer and supplier. TransDigm Group Incorporated (NYSE:TDG) saw a one-month return of -1.59% and saw its stock price rise 46.80% over the past 52 weeks. On June 26, 2024, TransDigm Group Incorporated (NYSE:TDG) stock price closed at $1,300.83 per share, with a market capitalization of $72.792 billion.
In its first quarter 2024 investor letter, ClearBridge Global Growth Strategy said the following about TransDigm Group Incorporated (NYSE: TDG):
“U.S. aircraft parts manufacturer Transdigm Group, Inc. (NYSE:TDG) is our largest addition. TransDigm is a well-established compounder with strong pricing power due to regulatory barriers that limit the number of competitors and proprietary intellectual property that makes it the sole supplier for many certified aircraft parts. We believe the company will continue to grow for the long term, benefiting from the expansion of the aerospace aftermarket and potential acquisitions in this still fragmented sector.”
Aerial view of a modern commercial jetliner in flight, with the wings shining in the sunlight.
TransDigm Group Incorporated (NYSE:TDG) is not included in our list of the 31 most popular stocks among hedge funds. According to our database, it was in 78 hedge fund portfolios at the end of the first quarter, compared to 65 in the previous quarter. In the second quarter of fiscal 2024, TransDigm Group Incorporated (NYSE:TDG) saw organic growth of 16.1%, with contributions from all market channels. While we recognize the investment potential of TransDigm Group Incorporated (NYSE:TDG), we believe that AI stocks have a better chance of delivering higher returns in a shorter time frame. If you are looking for AI stocks that are as promising as NVIDIA but trade for less than 5 times its revenue, check out our report. Cheapest AI Stocks.
We’ve covered TransDigm Group Incorporated (NYSE:TDG) in a separate article, sharing our Mar Vista Focus strategy’s view on the company. Additionally, you can see our Hedge Fund Investor Letters Q1 2024 page for other investor letters from hedge funds and other leading investors.
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Disclosures: None. This article originally appeared on Insider Monkey.
