Madison Funds: “Outlook for Revolve Group (RVLV)’s Business Model Remains as Robust as Ever”

Madison Funds, advised by Madison Asset Management, LLC, released its “Madison Small Cap Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. During the quarter, the fund declined 18.5% compared to a decline of 17.2% for the Russell 2000 benchmark. The fund’s underperformance was driven by stock selection. In addition, you can check the top 5 holdings of the fund to learn about its best picks in 2022.

Madison Funds discussed stocks like Revolve Group, Inc. (NYSE:RVLV) in the second quarter investor letter. Headquartered in Cerritos, California, Revolve Group, Inc. (NYSE:RVLV) is an online fashion retailer. On September 21, 2022, Revolve Group, Inc. (NYSE:RVLV) stock closed at $24.61 per share. One-month return of Revolve Group, Inc. (NYSE:RVLV) was -4.46% and its shares lost 64.39% of their value over the last 52 weeks. Revolve Group, Inc. (NYSE:RVLV) has a market capitalization of $1.805 billion.

Here is what Madison Funds specifically said about Revolve Group, Inc. (NYSE:RVLV) in its Q2 2022 investor letter:

“The selloff that began with ultra-high growth, high valuation technology stocks extended into nearly all sectors as recessionary fears pressured all stocks – especially consumer discretionary stocks, which arguably represent one of the most cyclical sectors of the economy. Even though we were, and continue to be significantly underweight these stocks, our investments here hurt our performance the most as individual stocks like Revolve Group, Inc. (NYSE:RVLV) were heavily punished. Ironically, RVLV delivered strong results and a better-than-expected outlook during the quarter, but the market, always a forward-looking mechanism, believes that substantial weakness is coming. We continue to believe that even in a recessionary scenario the stock has been overly punished and the long-term outlook for this unique business model remains as robust as ever.”

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Revolve Group, Inc. (NYSE:RVLV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Revolve Group, Inc. (NYSE:RVLV) at the end of the second quarter which was 23 in the previous quarter.

We discussed Revolve Group, Inc. (NYSE:RVLV) in another article and shared Polen Capital’s views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

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