ClearBridge Investments, an investment management firm, released its first-quarter 2024 “Mid Cap Strategy” investor letter. A copy of the same can be downloaded here. Large-cap AI beneficiaries led markets in the first quarter, with the Russell 1000 Index returning 10.30%. Meanwhile, midcaps saw a boost from a wider market, with the Russell Midcap Index gaining 8.60%. The Strategy underperformed its Russell Midcap Index benchmark in the first quarter. The strategy gained across nine of the 11 sectors in which it was invested, on an absolute basis. Industrials and financials sectors were the leading contributors while consumer discretionary and IT sectors detracted. Overall stock selection and sector allocation effects detracted from performance on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Mid Cap Strategy highlighted stocks like Etsy, Inc. (NASDAQ:ETSY), in the first quarter 2024 investor letter. Etsy, Inc. (NASDAQ:ETSY) two-sided online marketplaces that connect buyers and sellers. The one-month return of Etsy, Inc. (NASDAQ:ETSY) was -3.16%, and its shares lost 30.61% of their value over the last 52 weeks. On June 26, 2024, Etsy, Inc. (NASDAQ:ETSY) stock closed at $ 59.490 per share with a market capitalization of $6.956 billion.
ClearBridge Mid Cap Strategy stated the following regarding Etsy, Inc. (NASDAQ:ETSY) in its first quarter 2024 investor letter:
“Online marketplace Etsy, Inc. (NASDAQ:ETSY) also saw weaker performance as consumer preferences for goods lagged market expectations. However, we think there is substantial opportunity for the company to reaccelerate growth and increase margins as it extracts greater economic rents from its two-sided marketplace for artisanal goods due to commanding market share, lack of direct competition and support from new activist investors.”
A young woman shopping for a vintage fashion item online.
Etsy, Inc. (NASDAQ:ETSY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Etsy, Inc. (NASDAQ:ETSY) at the end of the first quarter which was 36 in the previous quarter. Etsy, Inc.’s (NASDAQ:ETSY) revenue for the first quarter increased by 0.8% to reach $646 million and reported $168 million in adjusted EBITDA. While we acknowledge the potential of Etsy, Inc. (NASDAQ:ETSY) 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.
We discussed Etsy, Inc. (NASDAQ:ETSY) in another article and shared the list of best e-commerce stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 2024 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.
