Choice Equities Capital Management, a hedge fund manager, released its third-quarter investor letter recently. You can view it here. In the third quarter, the fund returned -1.7% on a net basis compared to -2.2% loss for the Russell 2000 Index and -4.9% loss for the S&P 500 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Choice Equities highlighted stocks like Crocs, Inc. (NASDAQ:CROX) in the Q3 2022 investor letter. Headquartered in Broomfield, Colorado, Crocs, Inc. (NASDAQ:CROX) engages in the footwear and accessories business. On December 13, 2022, Crocs, Inc. (NASDAQ:CROX) stock closed at $95.47 per share. One-month return of Crocs, Inc. (NASDAQ:CROX) was -1.23%, and its shares lost 37.83% of their value over the last 52 weeks. Crocs, Inc. (NASDAQ:CROX) has a market capitalization of $5.895 billion.
Choice Equities made the following comment about Crocs, Inc. (NASDAQ:CROX) in its Q3 2022 investor letter:
“Crocs, Inc. (NASDAQ:CROX) – Also with a PE multiple of ~8x today, shares of Croc’s Inc. continue to present attractive value. The HeyDude brand is posting impressive growth, now in its third consecutive year of triple digit percentage sales gains, as it benefits from the greater distribution and marketing capabilities the legacy Croc’s brand enjoys. Like many brands today, it trades at a historically cheap valuation. However, unlike many other brands, we continue to think both HeyDude and Croc’s still offer attractive growth opportunities. The HeyDude brand in particular remains highly underpenetrated, with recent brand awareness readings in the 20% ranges, suggesting meaningful head room to legacy Croc’s 90% levels. Additionally, because the company will likely approach its <2 leverage target in a quarter or two, management will soon have the opportunity to re-engage in some form of capital return initiatives for shareholders as they have in the past.”
Crocs, Inc. (NASDAQ:CROX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Crocs, Inc. (NASDAQ:CROX) at the end of the third quarter which was 29 in the previous quarter.
We discussed Crocs, Inc. (NASDAQ:CROX) in another article and shared the list of world-class shoe stocks. 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.
