ClearBridge Investments, an investment management company, released its “ClearBridge SMID Cap Growth Strategy” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the strategy underperformed the Russell 2500 Growth benchmark. On an absolute basis, the strategy gained in six of the 10 sectors it was invested in during the quarter. The IT, industrials, and healthcare sectors were the leading contributors while the financials and energy detracted from the performance. Allocation effects contributed in relative terms but were offset by stock selection. In addition, please check the fund’s top five holdings to know its best picks in 2023.
ClearBridge SMID Cap Growth Strategy highlighted stocks like Floor & Decor Holdings, Inc. (NYSE:FND) in the Q1 2023 investor letter. Headquartered in Atlanta, Georgia, Floor & Decor Holdings, Inc. (NYSE:FND) is a retailer of hard surface flooring that provides tile, wood, laminate, vinyl, and natural stone flooring products and decorative accessories. On May 11, 2023, Floor & Decor Holdings, Inc. (NYSE:FND) stock closed at $93.16 per share. One-month return of Floor & Decor Holdings, Inc. (NYSE:FND) was -5.33%, and its shares gained 30.35% of their value over the last 52 weeks. Floor & Decor Holdings, Inc. (NYSE:FND) has a market capitalization of $9.9 billion.
ClearBridge SMID Cap Growth Strategy made the following comment about Floor & Decor Holdings, Inc. (NYSE:FND) in its Q1 2023 investor letter:
“We initiated a new position in Floor & Decor Holdings, Inc. (NYSE:FND), in the consumer discretionary sector, a multi-channel retail and commercial flooring distributor. The company is essentially a flooring version of Home Depot with similar service and cost leadership strategy, led by several members of senior management from Home Depot that guided that company through its rapid growth phase. Floor & Decor is set up for 15%-20% prospective store growth to 500 stores over the next decade and strong unit economics with new stores generating over 50% cash on cash returns in year three. Furthermore, there are favorable secular tailwinds as hard surface flooring is taking share from carpet and Floor & Decor has volume price advantages by purchasing products direct from suppliers.”
Floor & Decor Holdings, Inc. (NYSE:FND) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Floor & Decor Holdings, Inc. (NYSE:FND) at the end of the fourth quarter which was 32 in the previous quarter.
We discussed Floor & Decor Holdings, Inc. (NYSE:FND) in another article and shared Headwaters Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q1 2023 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.