Is Olaplex Holdings (OLPX) A Smart Long-Term Buy?

ClearBridge Investments, an investment management firm, published its “Mid Cap Growth Strategy” third quarter 2021 investor letter – a copy of which can be downloaded here. During the third quarter, the ClearBridge Mid Cap Growth Strategy outperformed the benchmark Russell Midcap Growth Index. On an absolute basis, the Strategy had gains across seven of the 10 sectors in which it was invested during the quarter (out of 11 sectors total), with the IT and health care sectors the leading contributors. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

ClearBridge Mid Cap Growth Strategy, in its Q3 2021 investor letter, mentioned Olaplex Holdings, Inc. (NASDAQ: OLPX) and discussed its stance on the firm. Olaplex Holdings, Inc. is a Santa Barbara, California-based science-enabled, technology-driven beauty company with a $17.9 billion market capitalization. OLPX delivered a -10.59% return since the beginning of the year and it closed at $27.74 per share on January 04, 2022.

Here is what ClearBridge Mid Cap Growth Strategy has to say about Olaplex Holdings, Inc.  in its Q3 2021 investor letter:

“Within capital markets, the U.S. initial public offering (IPO) market remains active with $27 billion in deals during the third quarter, while chunky secondary offerings from private holders weighed on selected equities. We remained selective in the new issue market, participating in the IPO of Olaplex Holdings in the consumer staples sector. Olaplex is a marketer of hair care products targeting a massive consumer market where it is less than 1% penetrated. The company possesses a differentiated model driven by 1) a patented “bond building” ingredient, 2) a devout stylist community and social media presence that is larger than its mass channel peers, and 3) a fully outsourced model that borders on licensing.”

Photo by Adam Winger on Unsplash

Based on our calculations, Olaplex Holdings, Inc. (NASDAQ: OLPX) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. OLPX was in 52 hedge fund portfolios at the end of the third quarter of 2021, compared to 0 funds in the previous quarter. Olaplex Holdings, Inc. (NASDAQ: OLPX) delivered a 4.06% return in the past 3 months.

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.