Meridian Funds, managed by ArrowMark Partners, released its “Meridian Hedged Equity Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the quarter, the fund declined -1.36% (net), outperforming its benchmark, the S&P 500 Index, which declined -3.27%. The firm focuses on high-quality companies for long-term growth. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Meridian Hedged Equity Fund highlighted stocks like Sally Beauty Holdings, Inc. (NYSE:SBH) in the third quarter 2023 investor letter. Headquartered in Denton, Texas, Sally Beauty Holdings, Inc. (NYSE:SBH) is a specialty retailer and distributor of professional beauty supplies. On December 22, 2023, Sally Beauty Holdings, Inc. (NYSE:SBH) stock closed at $13.19 per share. One-month return of Sally Beauty Holdings, Inc. (NYSE:SBH) was 31.24%, and its shares gained 5.69% of their value over the last 52 weeks. Sally Beauty Holdings, Inc. (NYSE:SBH) has a market capitalization of $1.425 billion.
Meridian Hedged Equity Fund made the following comment about Sally Beauty Holdings, Inc. (NYSE:SBH) in its Q3 2023 investor letter:
“Sally Beauty Holdings, Inc. (NYSE:SBH) is a global distributor of retail and professional beauty products and is the largest in the U.S. by store count, operating around 5,000 stores through its Sally Beauty Supply and Beauty Systems Group businesses. Over 40% of its revenue comes from hair products and the company also offers a wide range of private- label products, which make up about 45% of total sales. sales. Although the company reported strong results in the quarter, sales slowed during the period, indicating ongoing headwinds. While Sally Beauty has some degree of recession resistance, it is still affected by economic slowdowns, which can lead to fewer purchases and longer periods between colorings, for example. The company has maintained a strong market position in the DIY hair care sector, differentiated product offerings, and robust free cash flow generation.”
A customer in a franchised store trying out hair color products.
Sally Beauty Holdings, Inc. (NYSE:SBH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Sally Beauty Holdings, Inc. (NYSE:SBH) at the end of third quarter which was 17 in the previous quarter.
We discussed Sally Beauty Holdings, Inc. (NYSE:SBH) in another article and shared Meridian Funds’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.