ClearBridge Investments, an investment management company, released its “ClearBridge SMID Cap Growth Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The Strategy underperformed its Russell 2500 Growth Index benchmark in the quarter. Although there were strong contributions from a few companies across different sectors, the underperformance relative to the benchmark was minimal during the second quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge SMID Cap Growth Strategy highlighted stocks like Chewy, Inc. (NYSE:CHWY), in the second quarter 2024 investor letter. Chewy, Inc. (NYSE:CHWY) is an online retailer that provides pet food and treats, pet supplies and pet medications, and other pet health products, as well as pet services. The one-month return of Chewy, Inc. (NYSE:CHWY) was 4.87%, and its shares gained 63.96% of their value over the last 52 weeks. On September 26, 2024, Chewy, Inc. (NYSE:CHWY) stock closed at $29.63 per share with a market capitalization of $12.225 billion.
ClearBridge SMID Cap Growth Strategy stated the following regarding Chewy, Inc. (NYSE:CHWY) in its Q2 2024 investor letter:
“We initiated a new position in online pet retailer Chewy, Inc. (NYSE:CHWY) in the consumer discretionary sector. We believe the company has exited a period of tough comparables achieved during COVID-19 and that the decline in pet products spending has begun to stabilize. The company’s initiatives in warehouse automation, pharmaceutical services and private label products are strong catalysts, and Chewy, which has built a loyal base through peerless customer service, is set up to improve margins as customer growth inflects positively.”
A close-up shot of a store shelf stocked with pet food and supplies.
Chewy, Inc. (NYSE:CHWY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Chewy, Inc. (NYSE:CHWY) at the end of the second quarter which was 31 in the previous quarter. In the second quarter, Chewy, Inc.’s (NYSE:CHWY) net sales grew by approximately 3% to $2.86 billion. While we acknowledge the potential of Chewy, Inc. (NYSE:CHWY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Chewy, Inc. (NYSE:CHWY) and shared Meridian Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.