ClearBridge Investments, an investment management firm, published its “Mid Cap Growth Strategy” second quarter 2022 investor letter – a copy of which can be downloaded here. The ClearBridge Mid Cap Growth Strategy underperformed the Russell Midcap Growth Index during the second quarter. On an absolute basis, the Strategy had losses across all 10 sectors in which it was invested during the quarter (out of 11 sectors total). The leading detractors were the IT and consumer discretionary sectors, while the real estate sector was the smallest detractor. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, ClearBridge Mid Cap Growth Strategy Fund mentioned Carvana Co. (NYSE:CVNA) and explained its insights for the company. Founded in 2012, Carvana Co. (NYSE:CVNA) is a Tempe, Arizona-based used car dealers company with a $6.4 billion market capitalization. Carvana Co. (NYSE:CVNA) delivered a -84.43% return since the beginning of the year, while its 12-month returns are down by -89.82%. The stock closed at $36.09 per share on August 24, 2022.
Here is what ClearBridge Mid Cap Growth Strategy Fund has to say about Carvana Co. (NYSE:CVNA) in its Q2 2022 investor letter:
“The Strategy’s consumer discretionary holdings weighed on performance as inflation eroded consumer purchasing power and companies faced difficult comparisons with 2021 earnings, which were helped by government stimulus. Our sector exposure is focused on high-quality share-takers such as online used car retailer Carvana (NYSE:CVNA). After being one of the portfolio’s top performers over the last few years, the company has struggled of late due to low used car inventory levels and investor concern about the company’s ability to fund future growth. However, we see Carvana as a consistent earnings compounder that continues to steadily gain share. We took advantage of derating in the stock price to add to our position.”
Photo by Obi Onyeador on Unsplash
Our calculations show that Carvana Co. (NYSE:CVNA) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Carvana Co. (NYSE:CVNA) was in 47 hedge fund portfolios at the end of the second quarter of 2022, compared to 48 funds in the previous quarter. Carvana Co. (NYSE:CVNA) delivered a 16.57% return in the past 3 months.
In August 2022, we also shared another hedge fund’s views on Carvana Co. (NYSE:CVNA) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
Disclosure: None. This article is originally published at Insider Monkey.
