Decline in Car Wash Volumes and Poor Weather Drove Driven Brands Holdings (DRVN)

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” third-quarter investor letter. A copy of the same can be downloaded here. In the quarter the fund returned -3.67% (net), compared to -7.32% return for the Russell 2000 Growth Index. Year-to-date the fund returned 11.56% (net) compared to 9.59% return for the index. The third quarter saw a decline in global equities markets, but they remained positive YTD. Value has generally outperformed Growth, as demonstrated by the style factors and market indexes. In addition, please check the fund’s top five holdings to know its best picks in 2023.

TimesSquare Capital U.S. Small Cap Growth Strategy highlighted stocks like Driven Brands Holdings Inc. (NASDAQ:DRVN) in the third quarter 2023 investor letter. Headquartered in Charlotte, North Carolina, Driven Brands Holdings Inc. (NASDAQ:DRVN) provides automotive services to retail and commercial customers. On December 6, 2023, Driven Brands Holdings Inc. (NASDAQ:DRVN) stock closed at $13.10 per share. One-month return of Driven Brands Holdings Inc. (NASDAQ:DRVN) was 14.31%, and its shares lost 55.71% of their value over the last 52 weeks. Driven Brands Holdings Inc. (NASDAQ:DRVN) has a market capitalization of $2.148 billion.

TimesSquare Capital U.S. Small Cap Growth Strategy made the following comment about Driven Brands Holdings Inc. (NASDAQ:DRVN) in its Q3 2023 investor letter:

“Also detracting from returns was Driven Brands Holdings Inc. (NASDAQ:DRVN), an automotive services company providing a range of needs, including paint, collision, glass, vehicle repair, oil change, maintenance, and car washes. Although its recent fiscal quarterly results were better than expected, guidance for the rest of 2023 was reduced. Most areas saw growth, though there was a marked decline in car wash volumes, with management citing poor weather conditions as the culprit. Driven also noted competition was growing in that segment, and the combined effect was a -54% decline.”

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Driven Brands Holdings Inc. (NASDAQ:DRVN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Driven Brands Holdings Inc. (NASDAQ:DRVN) at the end of third quarter which was 20 in the previous quarter.

We discussed Driven Brands Holdings Inc. (NASDAQ:DRVN) in another article and shared Baron Small Cap Fund’s 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.