Here’s Why Mattel (MAT) Detracted in the Third Quarter

Longleaf Partners, managed by Southeastern Asset Management, released its “Small-Cap Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. The fund declined 9.31% in the third quarter compared to a 2.19% decline for the Russell 2000. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Longleaf Partners discussed the stocks like Mattel, Inc. (NASDAQ:MAT) in its Q3 2022 investor letter. Headquartered in El Segundo, California, Mattel, Inc. (NASDAQ:MAT) is an entertainment company for children. On November 14, 2022, Mattel, Inc. (NASDAQ:MAT) stock closed at $16.66 per share. One-month return of Mattel, Inc. (NASDAQ:MAT) was -15.99%, and its shares lost 26.80% of their value over the last 52 weeks. Mattel, Inc. (NASDAQ:MAT) has a market capitalization of $5.904 billion.

Longleaf Partners made the following comment about Mattel, Inc. (NASDAQ:MAT) in its Q3 2022 investor letter:

“Toy and IP company Mattel, Inc. (NASDAQ:MAT) was also a detractor in the quarter. There was very little Mattel-specific news in the quarter beyond another solid quarter of execution. No news was bad news, however, as previous rumors of a sale of the company have not yet come to fruition. This is understandable in the current environment where deals are harder to get done. As the overall macro picture deteriorated, the market also came to doubt that Mattel can generate the $2+/share of free cash flow that it believes is possible in the near term. The good news is that Mattel remains a historically defensive business, and there is zero in the stock price today for IP monetization success, which is closer than ever with items like a new Barbie movie in 2023 and multiple projects in the pipeline.”

Mattel, Inc. (NASDAQ:MAT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Mattel, Inc. (NASDAQ:MAT) at the end of the second quarter which was 38 in the previous quarter.

We discussed Mattel, Inc. (NASDAQ:MAT) in another article and shared the best seasonal stocks to buy. In addition, please check out our hedge fund investor letters Q3 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.