Would You Consider Investing in SMART Global Holding (SGH)?

ClearBridge Investments, an investment management firm, published its “Small Cap Strategy” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Small Cap Strategy outperformed the Russell 2000 Index, the Strategy’s benchmark, during the fourth quarter. On an absolute basis, the Strategy posted gains in nine of 11 sectors in which it was invested for the quarter. The primary contributors to the Strategy’s performance were the financials, materials, and IT sectors. The communication services sector was the main detractor from performance. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

ClearBridge Investments Small Cap Strategy, in its Q4 2021 investor letter, mentioned SMART Global Holdings, Inc. (NASDAQ:SGH) and discussed its stance on the firm. Founded in 1988, SMART Global Holdings, Inc. (NASDAQ:SGH) is a Newark, California-based specialty memory, storage, and hybrid solutions provider with a $1.2 billion market capitalization, and is currently spearheaded by its CEO, Mark Adams. SMART Global Holdings, Inc. (NASDAQ:SGH) delivered a -31.06% return since the beginning of the year, while its 12-month returns are up by 0.47%. The stock closed at $24.47 per share on April 04, 2022.

Here is what ClearBridge Investments Small Cap Strategy has to say about SMART Global Holdings, Inc. (NASDAQ:SGH) in its Q4 2021 investor letter:

“Fourth quarter outperformance came from a diverse set of sectors. In the information technology (IT) sector, SMART Global Holding’s strategy of diversifying from a legacy commodity memory business in Brazil to a higher-margin specialty computing solution seems to be paying off, with the company reporting significant improvements in profitability that were realized much earlier than anticipated.”

Semiconductor

Photo by Yogesh Phuyal on Unsplash

Our calculations show that SMART Global Holdings, Inc. (NASDAQ:SGH) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. SMART Global Holdings, Inc. (NASDAQ:SGH) was in 18 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 21 funds in the previous quarter. SMART Global Holdings, Inc. (NASDAQ:SGH) delivered a -32.70% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on SMART Global Holdings, Inc. (NASDAQ:SGH) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.

https://finance.yahoo.com/news/consider-investing-smart-global-holding-140836113.html

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