ClearBridge Investments, an investment management firm, published its “Small Cap Strategy” third-quarter 2022 investor letter – a copy of which can be downloaded here. The ClearBridge Small Cap Strategy underperformed its Russell 2000 Index benchmark during the third quarter. On an absolute basis, the Strategy had losses in nine out of 11 sectors in which it was invested during the quarter. The leading detractors were the IT and communication services sectors, positive contributors included the consumer staples sector and the utility sector was flat for the period. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.
In its Q3 2022 investor letter, ClearBridge Investments Small Cap Strategy mentioned OneMain Holdings, Inc. (NYSE:OMF) and explained its insights for the company. Founded in 1912, OneMain Holdings, Inc. (NYSE:OMF) is an Evansville, Indiana-based financial services company with a $4.6billion market capitalization. OneMain Holdings, Inc. (NYSE:OMF) delivered a -23.98% return since the beginning of the year, while its 12-month returns are down by -25.50%. The stock closed at $38.04 per share on November 22, 2022.
Here is what ClearBridge Investments Small Cap Strategy has to say about OneMain Holdings, Inc. (NYSE:OMF) in its Q3 2022 investor letter:
“We also seized the opportunity to add OneMain (NYSE:OMF), in the financials sector, to the portfolio. A consumer finance company with a focus on personal loans to customers who have limited access to traditional lenders, OneMain’s stock has suffered from the perception that a recession would result in significant credit losses particularly at the lower quality end of the spectrum.
While we did see a slight uptick in credit loss rates during the quarter, the rebound is off historic and exceptionally low levels. OneMain maintains strong credit spreads, great returns and a management team composed of efficient operators with extensive experience in navigating the consumer credit market during recessions, making it an excellent addition to the portfolio.”
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Our calculations show that OneMain Holdings, Inc. (NYSE:OMF) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. OneMain Holdings, Inc. (NYSE:OMF) was in 31 hedge fund portfolios at the end of the second quarter of 2022, compared to 28 funds in the previous quarter. OneMain Holdings, Inc. (NYSE:OMF) delivered a 3.34% return in the past 3 months.
In October 2022, we also shared another hedge fund’s views on OneMain Holdings, Inc. (NYSE:OMF) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.
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Disclosure: None. This article is originally published at Insider Monkey.
