Here’s Why ClearBridge Investments Exited its Olaplex (OLPX) Position

ClearBridge Investments, an investment management firm, published its “Mid Cap Growth Strategy” first quarter 2021 investor letter – a copy of which can be downloaded here. During the first quarter, the ClearBridge Mid Cap Growth Strategy underperformed its Russell Midcap Growth benchmark. On an absolute basis, the Strategy had losses across nine of the 10 sectors in which it was invested during the quarter (out of 11 sectors total), with the IT, consumer discretionary, and health care sectors the primary detractors, while the energy sector was the lone contributor. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Clearbridge Investments Mid Cap Growth Strategy mentioned Olaplex Holdings, Inc. (NASDAQ:OLPX) and explained its insights for the company. Founded in 2014, Olaplex Holdings, Inc. (NASDAQ:OLPX)  is a Santa Barbara, California-based science-enabled, technology-driven beauty company with a $9.8 billion market capitalization. Olaplex Holdings, Inc. (NASDAQ:OLPX)  delivered a -47.75% and it closed at $15.22 per share on April 15, 2022.

Here is what Clearbridge Investments Mid Cap Growth Strategy has to say about Olaplex Holdings, Inc. (NASDAQ:OLPX) in its Q1 2022 investor letter:

“During this sharp downward move for growth equities, the ClearBridge Mid Cap Growth Strategy trailed its Russell Midcap Growth benchmark. Strategy holdings were buffeted by a variety of macro and industry-specific factors. We exited hair care products maker Olaplex (NASDAQ:OLPX) in the consumer staples sector on concerns over what negative publicity for the company could mean for branding.”

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Our calculations show that Olaplex Holdings, Inc. (NASDAQ:OLPX) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Olaplex Holdings, Inc. (NASDAQ:OLPX) was in 35 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 52 funds in the previous quarter. Olaplex Holdings, Inc. (NASDAQ:OLPX) delivered a -33.36% return in the past 3 months.

In January 2022, we published an article that includes Olaplex Holdings, Inc. (NASDAQ:OLPX) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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