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 Rapid7, Inc. (NASDAQ:RPD) and explained its insights for the company. Founded in 2000, Rapid7, Inc. (NASDAQ:RPD) is a Boston, Massachusetts-based security data and analytic software solutions provider with a $1.6 billion market capitalization. Rapid7, Inc. (NASDAQ:RPD) delivered a -75.72% return since the beginning of the year, while its 12-month returns are down by -77.40%. The stock closed at $28.57 per share on November 18, 2022.
Here is what ClearBridge Investments Small Cap Strategy has to say about Rapid7, Inc. (NASDAQ:RPD) in its Q3 2022 investor letter:
“Information technology (IT) also proved a headwind to performance, with three of the five top detractors coming from the sector. Broadly, the increase in interest rates discounted longer-term cash flows, compressed multiples and pressured share prices for the typically more growth-oriented sector. Rapid7 (NASDAQ:RPD), a cybersecurity solutions provider, fits that bill, but it also reduced its earnings guidance for the second half of the year, citing more conservative expectations for its business in Europe and the adverse effects of currency fluctuations.”
Photo by Gabriel Benois on Unsplash
Our calculations show that Rapid7, Inc. (NASDAQ:RPD) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Rapid7, Inc. (NASDAQ:RPD) was in 19 hedge fund portfolios at the end of the second quarter of 2022, compared to 22 funds in the previous quarter. Rapid7, Inc. (NASDAQ:RPD) delivered a -53.80% return in the past 3 months.
In October 2022, we also shared another hedge fund’s views on Rapid7, Inc. (NASDAQ:RPD) 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.
