Here’s Why Wolfspeed (WOLF) Declined in Q4

ClearBridge Investments, an investment management firm, released its fourth-quarter 2022 “ClearBridge Multi Cap Growth Strategy” investor letter.  A copy of the same can be downloaded here. In the fourth quarter, the strategy outperformed the Russell 3000 Growth Index benchmark. The Strategy gained in six of the seven sectors on an absolute basis in which it was invested. Health care, industrials, and communication services sectors were the primary contributors, while IT sector detracted from performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.

ClearBridge Multi Cap Growth Strategy highlighted stocks Wolfspeed, Inc. (NYSE:WOLF) in its Q4 2022 investor letter. Headquartered in Durham, North Carolina, Wolfspeed, Inc. (NYSE:WOLF) is a semiconductor manufacturing company. On February 17, 2023, Wolfspeed, Inc. (NYSE:WOLF)  stock closed at $77.63 per share. One-month return of Wolfspeed, Inc. (NYSE:WOLF) was -2.87%, and its shares lost 19.63% of their value over the last 52 weeks. Wolfspeed, Inc. (NYSE:WOLF)  has a market capitalization of $9.658 billion.

ClearBridge Multi Cap Growth Strategy made the following comment about Wolfspeed, Inc. (NYSE:WOLF) in its Q4 2022 investor letter:

“More restrictive financial conditions weighed on several disruptors and companies that are not yet profitable. Wolfspeed, Inc. (NYSE:WOLF), a leader in the emerging market for chips from silicon carbide (SiC) for power management applications, was a primary detractor in the fourth quarter after strong performance earlier in the year. The company has suffered from short-term execution issues at its Durham, N.C. plant as it ramps up capacity in its newer fab to meet the significant long-term demands for SiC technology. The company raised $1.5 billion in a convertible offering that improves its cash position, but it will have ongoing financing needs in the years ahead.”

Wolfspeed, Inc. (NYSE:WOLF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Wolfspeed, Inc. (NYSE:WOLF) at the end of the third quarter, and 31 in the previous quarter.

We discussed Wolfspeed, Inc. (NYSE:WOLF) in another article and shared Carillon Tower Advisors’ 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.