Should You Hold Farfetch Limited (FTCH)?

Polen Capital, an investment management company, released its “Polen U.S. SMID Company Growth Strategy” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The portfolio returned -0.31% net of fees in the fourth quarter compared to a 4.72% return for the Russell 2500 Growth Index. For the full-year 2022, the fund declined 44.95% while the Russell 2500 Growth Index fell 26.21%. Geopolitical uncertainty, inflation, rising interest rates, and concerns about recession impacted the portfolio’s performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Polen U.S. SMID Company Growth Strategy highlighted stocks like Farfetch Limited (NYSE:FTCH) in its Q4 2022 investor letter. Headquartered in London, the United Kingdom, Farfetch Limited (NYSE:FTCH) is an online marketplace for luxury goods. On February 9, 2023, Farfetch Limited (NYSE:FTCH) stock closed at $5.90 per share. One-month return of Farfetch Limited (NYSE:FTCH) was 2.97% and its shares lost 69.71% of their value over the last 52 weeks. Farfetch Limited (NYSE:FTCH) has a market capitalization of $2.25 billion.

Polen U.S. SMID Company Growth Strategy made the following comment about Farfetch Limited (NYSE:FTCH) in its Q4 2022 investor letter:

“Farfetch Limited (NYSE:FTCH) is an online marketplace for luxury goods. The stock was down -35% on the back of an investor day where management issued targets that implied decelerating growth. While this is a disappointing development in what has shaped into a disappointing year for the stock, we are maintaining our position with a focus on the long-term opportunity. Luxury fashion is still in a very nascent stage of migrating online. Farfetch—through partnerships and deep relationships it has built over many years— remains very well positioned to benefit from this trend.”

Farfetch Limited (NYSE:FTCH) is not our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held Farfetch Limited (NYSE:FTCH) at the end of the third quarter, which was 39 in the previous quarter.

We discussed Farfetch Limited (NYSE:FTCH) in another article and shared White Falcon Capital’s views on the company. 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.