Here’s Why Burlington Stores (BURL) Outperformed in Q4

Wedgewood Partners, an investment management company, released its “Focused SMID Cap Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 14.8% compared to a 7.4% return for the Russell 2500 Index. For the year 2022, the fund returned -19.0% compared to a -18.4% return for the benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Wedgewood Partners highlighted stocks like Burlington Stores, Inc. (NYSE:BURL) in its Q4 2022 investor letter. Headquartered in Burlington, New Jersey, Burlington Stores, Inc. (NYSE:BURL) is a branded apparel retailer. On March 6, 2023, Burlington Stores, Inc. (NYSE:BURL) stock closed at $218.74 per share. One-month return of Burlington Stores, Inc. (NYSE:BURL) was -3.94%, and its shares gained 21.17% of their value over the last 52 weeks. Burlington Stores, Inc. (NYSE:BURL) has a market capitalization of $14.26 billion.

Wedgewood Partners made the following comment about Burlington Stores, Inc. (NYSE:BURL)  in its Q4 2022 investor letter:

“Burlington Stores, Inc. (NYSE:BURL) posted another difficult quarter of results with comparable store sales (“comps”) declining -17%, yet the stock rallied strongly after the Company noted it began to see improvements late in the quarter. Earlier in 2022, the Company was caught off-guard by dramatic short-term shifts in consumer behavior and found itself in more direct competition with major retailers in the near-term. However, those headwinds are abating as most of the major retailers have worked through excess inventories. Burlington Stores has multiple levers to pull over the next several years that will lead to better growth and returns, regardless of macroeconomic pressures.”

Burlington Stores, Inc. (NYSE:BURL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Burlington Stores, Inc. (NYSE:BURL) at the end of the fourth quarter which was 27 in the previous quarter.

We discussed Burlington Stores, Inc. (NYSE:BURL) in another article and shared ClearBridge Mid Cap Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q4 2022 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.