Should You Exit Your Position in Synchrony Financial (SYF)?

ClearBridge Investments, an investment management company, released its “ClearBridge All Cap Value Strategy” third quarter 2022 investor letter. A copy of the same can be downloaded here. The strategy outperformed its benchmark index, Russell 3000 Growth Index, in the third quarter. All the 11 sectors in which the strategy invested in the quarter contributed negatively to the performance on an absolute basis. In addition, please check the fund’s top five holdings to know its best picks in 2022.

In the third-quarter letter, ClearBridge Investments discussed stocks like Synchrony Financial (NYSE:SYF). Headquartered in Stamford, Connecticut, Synchrony Financial (NYSE:SYF) is a US-based financial services company. On November 16, 2022, Synchrony Financial (NYSE:SYF) stock closed at $35.19 per share. One-month return of Synchrony Financial (NYSE:SYF) was 11.40% and its shares lost 27.58% of their value over the last 52 weeks. Synchrony Financial (NYSE:SYF) has a market capitalization of $15.855 billion.

ClearBridge Investments made the following comment about Synchrony Financial (NYSE:SYF) in its Q3 2022 investor letter:

“Among the positions we exited was Synchrony Financial (NYSE:SYF), in the financials sector. Synchrony is a private label credit card issuer that works with retailers and affinity groups. While we still believe the company is substantially undervalued, we ultimately decided to consolidate our exposure to the private credit industry in our investment in Capital One. While both companies share similar drivers, Synchrony has greater exposure to late fees, which the Consumer Finance Protection Bureau is actively focused on reducing, increasing the risk of a decline in the company’s earnings.”

Copyright: bugtiger / 123RF Stock Photo

Synchrony Financial (NYSE:SYF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Synchrony Financial (NYSE:SYF) at the end of the third quarter which was 35 in the previous quarter.

We discussed Synchrony Financial (NYSE:SYF) in another article and shared the list of finance stocks that billionaire David Harding is buying. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

• 15 Biggest Broadcasting Companies in the World
• 15 Biggest Midstream Companies in the US
• Ken Fisher Stock Portfolio

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