ClearBridge Investments Sold its Position in Reynolds Consumer Products (REYN)

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 Reynolds Consumer Products Inc. (NASDAQ:REYN). It engages in the business of household packaging products and has a market capitalization of $6.103 billion. The stock of Reynolds Consumer Products Inc. (NASDAQ:REYN) closed at $29.08 per share on August 5, 2022. One-month return of Reynolds Consumer Products Inc. (NASDAQ:REYN) was 6.09% and its shares gained  2.97% of their value over the last 52 weeks.

Here is what ClearBridge All Cap Value specifically said about Reynolds Consumer Products Inc. (NASDAQ:REYN) in its second-quarter investor letter:

“We also exited our position in Reynolds Consumer Products Inc. (NASDAQ:REYN), in the consumer staples sector. The company’s products are heavily reliant on commodity inputs such as aluminum and resin, which have seen significant inflation-related price increases over the last few quarters. Additionally, Reynold’s focus on the premiumization of its products such as scented trash bags and reinforced aluminum foil makes them more vulnerable to a shift in consumer preferences towards generic and store-brand options as inflation continues to erode consumer purchasing power. We feel this trend is emblematic of many companies within the sector and has been a contributing factor in the challenges of finding attractively valued companies with strong pricing power within consumer staples. As a result, we elected to exit the position in favor of other opportunities we feel are better positioned to leverage current market conditions to improve fundamentals and capture market share.”


Reynolds Consumer Products Inc. (NASDAQ:REYN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Reynolds Consumer Products Inc. (NASDAQ:REYN) at the end of the first quarter which was 11 in the previous quarter.

We discussed Reynolds Consumer Products Inc. (NASDAQ:REYN) in another article that covered some notable stocks that fell in March. 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.