12 Best Hair Care Stocks to Buy According to Hedge Funds

9. Helen of Troy Limited (NASDAQ:HELE)

Number of Hedge Fund Holders: 25

Helen of Troy Limited (NASDAQ:HELE) is a global consumer products company with an elaborate portfolio of brands, including Curlsmith, OXO, PUR, Hot Tools, Osprey, and more. It operates in the Beauty and Wellness and Home and Outdoor segments. The Beauty and Wellness segment offers beauty and wellness products, including hair styling appliances, grooming tools, and more.

The company continued to benefit from the meaningful net distribution gains it won in the first half of fiscal year 2025 and further expanded distribution in fiscal Q3 2025. It has grown its US weighted distribution by 11% year-over-year in fiscal year-to-date. The company has also attained meaningful international distribution via new channels and new distributor partnerships.

Helen of Troy Limited (NASDAQ:HELE) has various other strategic initiatives that position it on the path to growth. It is making progress in using data and analytics across all facets of its business. For instance, it is continually using its marketing mix model to prioritize investment opportunities across its brand portfolio and choose the marketing tactics with the best ROI potential. Such efforts have led to market share growth in various categories. Another of its long-term strategic initiatives includes refining and shaping its portfolio to maximize profitable growth. Helen of Troy Limited (NASDAQ:HELE) also announced the closing of its acquisition of Olive & June at the end of fiscal Q3 2025, which is expected to further support the company’s growth.

Palm Valley Capital Fund stated the following regarding Helen of Troy Limited (NASDAQ:HELE) in its Q3 2024 investor letter:

“Helen of Troy Limited (NASDAQ:HELE) was the only new purchase made during Q3. It is a diversified consumer products roll-up. The company’s top brands include OXO, Hydro Flask, Osprey, PUR, Hot Tools, and Dry Bar. Helen also has leading market positions through the licensed brands Braun, Vicks, Honeywell, and Revlon. The company’s operating performance peaked during the pandemic, but sales have contracted in the last two years as consumer demand for Helen’s products has normalized post-stimulus. The firm’s stock is heavily shorted, with short sellers arguing that Helen is an overleveraged and broken roll-up with second-tier brands and meager cash flow. We believe this is wrong. Most of the company’s brands command leading shares in their markets.”