Investor Concerns Dragged Carvana Co. (CVNA) in Q4

ClearBridge Investments, an investment management firm, released its fourth-quarter 2022 “Mid Cap Growth Strategy” investor letter – a copy of which can be downloaded here. The strategy underperformed the Russell Midcap Growth Index in the fourth quarter. It gained across six of the 10 sectors in which it was invested in the quarter. The industrials, health care, and consumer discretionary sectors were the leading contributors while the IT sector was the primary detractor. In addition, please check the fund’s top five holdings to know its best picks in 2022.

ClearBridge Mid Cap Growth Strategy highlighted stocks like Carvana Co. (NYSE:CVNA) in its Q4 2022 investor letter. Headquartered in Tempe, Arizona, Carvana Co. (NYSE:CVNA) is an e-commerce platform for buying and selling used cars. On February 17, 2023, Carvana Co. (NYSE:CVNA) stock closed at $11.37 per share. One-month return of Carvana Co. (NYSE:CVNA) was 75.19% and its shares lost 91.00% of their value over the last 52 weeks. Carvana Co. (NYSE:CVNA) has a market capitalization of $2.019 billion.

ClearBridge Mid Cap Growth Strategy made the following comment about Carvana Co. (NYSE:CVNA) in its Q4 2022 investor letter:

“We exited our position in online automotive retailer Carvana Co. (NYSE:CVNA), in the consumer discretionary sector. After being one of the portfolio’s top performers over the last few years, Carvana has struggled due to a cyclical downtrend in used car volumes and prices as well as investor concern about the company’s ability to fund future growth. We felt the combination of growing macro uncertainty combined with weakening fundamentals justified finally closing the position.”

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Carvana Co. (NYSE:CVNA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Carvana Co. (NYSE:CVNA)at the end of the third quarter, which was 47 in the previous quarter.

We discussed Carvana Co. (NYSE:CVNA) in another article and shared the list of best hot stocks to buy. 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.