What Makes HealthEquity (HQY) a Good Investment Avenue?

ClearBridge Investments, an investment management company, released its “ClearBridge Select Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The strategy outperformed its benchmark, the Russell 3000 Index, in the fourth quarter. On an absolute basis, the strategy gained across nine of the 10 sectors in which it was invested. Industrials, consumer staples, and healthcare sectors were the leading contributors while the IT sector detracted from performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.

ClearBridge Select Strategy highlighted stocks like HealthEquity, Inc. (NASDAQ:HQY) in the Q4 2022 investor letter. Headquartered in Draper, Utah, HealthEquity, Inc. (NASDAQ:HQY) provides financial technology solutions for healthcare accounts. On February 22, 2023, HealthEquity, Inc. (NASDAQ:HQY) stock closed at $65.30 per share. One-month return of HealthEquity, Inc. (NASDAQ:HQY) was 10.29%, and its shares gained 22.28% of their value over the last 52 weeks. HealthEquity, Inc. (NASDAQ:HQY) has a market capitalization of $5.527 billion.

ClearBridge Select Strategy made the following comment about HealthEquity, Inc. (NASDAQ:HQY) in its Q4 2022 investor letter:

“Our final health care addition was HealthEquity, Inc. (NASDAQ:HQY), which manages health care savings accounts (HSA) and benefits programs for employers. The company’s acquisition of WageWorks, a provider of transit and other employee benefits, offers a big cross-sell opportunity. Its core HSA business should benefit from strong employment growth supporting HSA growth while higher rates allow it to earn higher yields for participants in HSAs and higher management fees for HealthEquity.”

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HealthEquity, Inc. (NASDAQ:HQY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held HealthEquity, Inc. (NASDAQ:HQY) at the end of the fourth quarter which was 20 in the previous quarter.

We discussed HealthEquity, Inc. (NASDAQ:HQY) in another article and shared Carillon Scout Small Cap Fund’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.