Wasatch Global: “We Continue to View Sprouts (SFM) as Inexpensive”

Wasatch Global Investors, an investment management firm, published its “Wasatch Small Cap Value Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The Wasatch Small Cap Value Fund—Investor Class fell by -9.88% and underperformed the value benchmark in the quarter. The fund’s approach tends to place the Fund at the “growthier” end of the value category, which was positive for much of 2020–21 but proved to be a headwind in the first three months of 2022.  Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Wasatch Small Cap Value Fund mentioned Sprouts Farmers Market, Inc. (NASDAQ:SFM) and explained its insights for the company. Founded in 2002, Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a Phoenix, Arizona-based supermarket company with a $2.9 billion market capitalization. Sprouts Farmers Market, Inc. (NASDAQ:SFM) delivered a -10.88% return since the beginning of the year, while its 12-month returns are down by -5.16%. The stock closed at $26.45 per share on June 16, 2022.

Here is what Wasatch Small Cap Value Fund has to say about Sprouts Farmers Market, Inc. (NASDAQ:SFM) in its Q1 2022 investor letter:

“Supermarket chain Sprouts Farmers Markets, Inc. (NASDAQ:SFM) was another holding that benefited from company-specific performance drivers. The stock slumped in 2021 when the company’s efforts to win new customers caused a hit to profit margins. We bought the stock on weakness, and it has bounced back following management’s decision to refocus on margins. We continue to view Sprouts as inexpensive, and we have maintained the position.”

Photo by Boxed Water Is Better on Unsplash

Our calculations show that Sprouts Farmers Market, Inc. (NASDAQ:SFM) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Sprouts Farmers Market, Inc. (NASDAQ:SFM) was in 24 hedge fund portfolios at the end of the first quarter of 2022, compared to 21 funds in the previous quarter. Sprouts Farmers Market, Inc. (NASDAQ:SFM) delivered a -15.36% return in the past 3 months.

In May 2022, we also shared another hedge fund’s views on Sprouts Farmers Market, Inc. (NASDAQ:SFM) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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