ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The Fed’s rate cut in September contributed to a shift from large-cap generative AI winners to a broader range of market leadership, particularly in small-cap stocks. However, the strategy underperformed its benchmark in the third quarter because weaknesses in the communication services and IT sectors outweighed the strong performances in health care and consumer discretionary. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Small Cap Strategy highlighted stocks like Indie Semiconductor, Inc. (NASDAQ:INDI), in the third quarter 2024 investor letter. Indie Semiconductor, Inc. (NASDAQ:INDI) offers automotive semiconductors and software solutions. The one-month return of Indie Semiconductor, Inc. (NASDAQ:INDI) was 7.62%, and its shares lost 37.87% of their value over the last 52 weeks. On January 6, 2025, Indie Semiconductor, Inc. (NASDAQ:INDI) stock closed at $4.66 per share with a market capitalization of $848.805 million.
ClearBridge Small Cap Strategy stated the following regarding Indie Semiconductor, Inc. (NASDAQ:INDI) in its Q3 2024 investor letter:
“Another IT holding, Indie Semiconductor, Inc. (NASDAQ:INDI), saw its stock price fall as a sharp contraction in the supply chain for the auto industry has caused the company’s revenue growth to stall. As a provider of automotive semiconductors and software, including for applications such as driver assistance systems, connected cars and electrification, the company has been further hampered by pushouts of new car models. Despite these near-term headwinds, Indie Semiconductor continues to have a strong backlog of orders and, as the automotive supply chain normalizes, we believe the company should see acceleration in revenue growth and share gains.”
A semiconductor chip with intricate circuitry, highlighting the company’s tech capabilities.
Indie Semiconductor, Inc. (NASDAQ:INDI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Indie Semiconductor, Inc. (NASDAQ:INDI) at the end of the third quarter which was 16 in the previous quarter. Indie Semiconductor, Inc.’s (NASDAQ:INDI) third quarter revenue came in at $54 million, slightly above the midpoint of guidance, up 3.1% sequentially. While we acknowledge the potential of Indie Semiconductor, Inc. (NASDAQ:INDI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Indie Semiconductor, Inc. (NASDAQ:INDI) and shared the list of best semiconductor penny stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2024 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.