Should You Hold Designer Brands (DBI) Due to Its Continued Growth Prospects?

Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund delivered a return of 12.12% net of fees, outperforming the 6.23% return of the Russell 2000 Index. Security selection contributed to the outperformance of the strategy in the quarter. Furthermore, the strategy benefitted from overweight allocation in Industrials and underweight exposure in Communication Services. For the calendar year, the strategy generated a ‐10.13% net of fees return compared to the Russell 2000 Index’s ‐20.44% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Aristotle Small Cap Equity Strategy highlighted stocks like Designer Brands Inc. (NYSE:DBI) in its Q4 2022 investor letter. Headquartered in Columbus, Ohio, Designer Brands Inc. (NYSE:DBI) is a footwear and accessories retailer. On March 24, 2023, Designer Brands Inc. (NYSE:DBI) stock closed at $8.55 per share. One-month return of Designer Brands Inc. (NYSE:DBI) was -13.55%, and its shares lost 38.40% of their value over the last 52 weeks. Designer Brands Inc. (NYSE:DBI) has a market capitalization of $544.237 million.

Aristotle Small Cap Equity Strategy made the following comment about Designer Brands Inc. (NYSE:DBI) in its Q4 2022 investor letter:

“Designer Brands Inc. (NYSE:DBI), a designer, producer and retailer of footwear and accessories, declined in the face of broad consumer weakness and a downwardly revised forward outlook. We maintain a position, as we believe the company is well‐positioned to benefit from the continued growth of its in‐house brands and direct‐to‐consumer channels, along with in‐store strategic initiatives.”

Pixabay/Public Domain

Designer Brands Inc. (NYSE:DBI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Designer Brands Inc. (NYSE:DBI) at the end of the fourth quarter which was 27 in the previous quarter.

We discussed Designer Brands Inc. (NYSE:DBI) in another article and shared the list of world-class shoe stocks to buy. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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