Is it a Good Choice to Invest in Vroom (VRM)?

ClearBridge Investments, an investment management firm, published its “Select Strategy” third quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Select Strategy underperformed its Russell 3000 Index benchmark in the third quarter. On an absolute basis, the Strategy had gains in four of the 10 sectors in which it was invested during the quarter (out of 11 sectors total). The IT and real estate sectors were the primary contributors to performance while the communication services and consumer discretionary sectors were the main detractors. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

ClearBridge Select Strategy, in its Q3 2021 investor letter, mentioned Vroom, Inc. (NASDAQ: VRM) and discussed its stance on the firm. Vroom, Inc. is a United States-based used car retailer and e-commerce company with a $1.3 billion market capitalization. VRM delivered a -10.75% return since the beginning of the year, while its 12-month returns are down by -76.36%. The stock closed at $9.63 per share on January 06, 2022.

Here is what ClearBridge Select Strategy has to say about Vroom, Inc.  in its Q3 2021 investor letter:

“A handful of our rapid growers hit tough earnings comparisons in the summer reporting period after experiencing a surge in demand in the second quarter of 2020 as companies moved to remote work and consumers were confined to their homes. E-commerce platforms such as Vroom have also faced headwinds as consumers become more active outside the home.”

Photo by BezeVision on Unsplash

Based on our calculations, Vroom, Inc. (NASDAQ: VRM) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. VRM was in 23 hedge fund portfolios at the end of the third quarter of 2021, compared to 21 funds in the previous quarter. Vroom, Inc. (NASDAQ: VRM) delivered a -54.79% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on VRM in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

Disclosure: None. This article is originally published at Insider Monkey.