Should You Now Consider Disposing Your Chewy (CHWY) Shares?

ClearBridge Investments, an investment management firm, published its “Mid Cap Growth Strategy” second quarter 2022 investor letter – a copy of which can be downloaded here. The ClearBridge Mid Cap Growth Strategy underperformed the Russell Midcap Growth Index during the second quarter. On an absolute basis, the Strategy had losses across all 10 sectors in which it was invested during the quarter (out of 11 sectors total). The leading detractors were the IT and consumer discretionary sectors, while the real estate sector was the smallest detractor. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, ClearBridge Mid Cap Growth Strategy Fund mentioned Chewy, Inc. (NYSE:CHWY) and explained its insights for the company. Founded in 2011, Chewy, Inc. (NYSE:CHWY) is a Dania Beach, Florida-based e-commerce business company with a $16.9 billion market capitalization. Chewy, Inc. (NYSE:CHWY) delivered a -31.74% return since the beginning of the year, while its 12-month returns are down by -56.35%. The stock closed at $40.25 per share on August 24, 2022.

Here is what ClearBridge Mid Cap Growth Strategy Fund has to say about Chewy, Inc. (NYSE:CHWY) in its Q2 2022 investor letter:

“We exited our position in Chewy, Inc. (NYSE:CHWY), in the consumer discretionary sector. While we continue to have a favorable opinion of the online pet products retailer, we decided to consolidate our exposure to the pet industry.”

Photo by James Lacy on Unsplash

Our calculations show that Chewy, Inc. (NYSE:CHWY) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Chewy, Inc. (NYSE:CHWY) was in 25 hedge fund portfolios at the end of the second quarter of 2022, compared to 21 funds in the previous quarter. Chewy, Inc. (NYSE:CHWY) delivered a 66.39% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on Chewy, Inc. (NYSE:CHWY) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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