Is Alexandria Real Estate Equities (ARE) worth adding to your portfolio?

ClearBridge Investments, an investment management company, has published its Mid Cap Strategy investor letter for the first quarter of 2024. You can download a copy here. Large-cap AI beneficiaries led the market in the first quarter, with the Russell 1000 index returning 10.30%. Meanwhile, mid-cap stocks rose in the broader market, with the Russell Midcap Index gaining 8.60%. The strategy underperformed the Russell Midcap Index in the first quarter. The strategy gained in nine of the 11 sectors it invested in, on an absolute basis. The industrial and financial sectors were the main contributors, while the consumer discretionary and IT sectors made a mark. Overall stock selection and sector allocation effects weighed on performance on a relative basis. Plus, check out the fund’s top five positions to see its top picks for 2024.

In its Q1 2024 investor letter, ClearBridge Mid Cap Strategy highlighted stocks like Alexandria Real Estate Equities, Inc. (NYSE:ARE). Alexandria Real Estate Equities, Inc. (NYSE:ARE) is a mission-driven life sciences REIT. Alexandria Real Estate Equities, Inc. Monthly Yield (NYSE:ARE) was -0.47% and its shares gained 2.10% of their value over the last 52 weeks. On June 26, 2024, the stock price of Alexandria Real Estate Equities, Inc. (NYSE:ARE) was trading at $115.68 per share and had a market capitalization of $20.243 billion.

In its first quarter 2024 investor letter, ClearBridge Mid Cap Strategy stated the following regarding Alexandria Real Estate Equities, Inc. (NYSE:ARE):

“We also added to existing holdings in sectors that we believe are well-positioned to outperform as they rebound from current lows. This included Alexandria Real Estate Equities, Inc. Limited Liability Company (NYSE:ARE), which should benefit from a narrowing spread between yields and financing costs and potential relief in financing costs as interest rates decline.

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Alexandria Real Estate Equities, Inc. (NYSE:ARE) is not on our list of the 31 most popular stocks among hedge funds. According to our database, 26 hedge fund portfolios were held by Alexandria Real Estate Equities, Inc. (NYSE:ARE) at the end of the first quarter, compared to 31 in the prior quarter. While we recognize the potential of Alexandria Real Estate Equities, Inc. (NYSE:ARE) as an investment, our belief is based on the belief that AI stocks have a better chance of achieving higher returns in less time. If you’re looking for an AI stock that shows as much promise as NVIDIA but is trading at less than 5 times earnings, check out our report on cheapest AI action.

In another article, we covered Alexandria Real Estate Equities, Inc. (NYSE:ARE) and shared a list of the largest real estate companies in the US in 2024. Also, check out our Q1 2024 Hedge Fund Investor Letters page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article was originally published on Monkey insider.