Here’s Why Etsy (ETSY) Detracted in Q1

Polen Capital, an investment management company, released its “Polen U.S. SMID Company Growth Strategy” first-quarter 2023 investor letter. A copy of the same can be downloaded here. The portfolio returned 11.81% gross and 11.49% net of fees in the first quarter compared to a 6.54% return for the Russell 2500 Growth Index. The company believes that focusing on well-positioned high-quality growth companies will help generate superior long-term returns over the next 5 years. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Polen U.S. SMID Company Growth Strategy highlighted stocks like Etsy, Inc. (NASDAQ:ETSY) in the Q1 2023 investor letter. Headquartered in Brooklyn, New York, Etsy, Inc. (NASDAQ:ETSY) is an online marketplace that connects buyers and sellers. On May 12, 2023, Etsy, Inc. (NASDAQ:ETSY) stock closed at $94.68 per share. One-month return of Etsy, Inc. (NASDAQ:ETSY) was -8.18%, and its shares gained 9.31% of their value over the last 52 weeks. Etsy, Inc. (NASDAQ:ETSY) has a market capitalization of $11.699 billion.

Polen U.S. SMID Company Growth Strategy made the following comment about Etsy, Inc. (NASDAQ:ETSY) in its Q1 2023 investor letter:

“Etsy, Inc. (NASDAQ:ETSY), the online marketplace for handmade and vintage goods, experienced some weakness in the quarter over concerns that gross merchandise volume (“GMV”) is slowing after a post-pandemic period that saw a step function increase in the number of active buyers and sellers. We view this as a temporary issue and believe the company is still in the early innings of this burgeoning personalized and creative goods market with several initiatives that should drive buyer growth and frequency of purchases.”

Etsy, Inc. (NASDAQ:ETSY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Etsy, Inc. (NASDAQ:ETSY) at the end of the fourth quarter, which was 45 in the previous quarter.

We discussed Etsy, Inc. (NASDAQ:ETSY) in another article and shared ClearBridge Mid Cap Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 2023 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.