Here’s Why ClearBridge Investments Disposed its Position in Owens Corning (OC)

ClearBridge Investments, an investment management company, released its “ClearBridge All Cap Value Strategy” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund underperformed Russell 3000 Value Index. Financials, industrials, and information technology sectors posted losses during the quarter. For more information on the fund’s top picks in 2022, please check its top five holdings.

In the letter, ClearBridge Investments discussed its ClearBridge All Cap Value Strategy portfolio. The letter mentioned stocks like Owens Corning (NYSE:OC). It is a developer and manufacturer of insulation, roofing, and fiberglass composites, headquartered in Toledo, Ohio, and has a market capitalization of $8.305 billion. The stock of Owens Corning (NYSE:OC) closed at $86.30 per share on August 5, 2022. One-month return of Owens Corning (NYSE:OC) was 9.01% and its shares lost 8.91% of their value over the last 52 weeks.

Here is what ClearBridge All Cap Value specifically said about Owens Corning (NYSE:OC) in its second-quarter investor letter:

“We exited our position in Owens Corning (NYSE:OC), in the industrials sector, a manufacturer of insulation, roofing and fiberglass materials used in the home construction industry. The rapid rise in interest and mortgage rates during the quarter, combined with surging home prices, have cast a shadow over the prospects of continued expansion in the home construction industry. While the company has thus far been able to successfully pass-through increases in material input costs to its customers, a slowdown in the home construction industry could make its ability to sustain its current margins a significant challenge. As a result, we elected to exit the position in favor of other opportunities we believe have greater resilience against challenging macro factors.”

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Owens Corning (NYSE:OC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Owens Corning (NYSE:OC) at the end of the first quarter which was 34 in the previous quarter.

We discussed Owens Corning (NYSE:OC) in another article and shared ClearBridge Investments’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

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

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