ClearBridge Investments, an investment management company, released its “ClearBridge Multi Cap Growth Strategy” first quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter, the Strategy underperformed its benchmark, the Russell 3000 Growth Index. The Strategy posted gains across five of the seven sectors in which it was invested, on an absolute basis. Overall stock selection detracted from the performance on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Multi Cap Growth Strategy highlighted stocks like E.l.f. Beauty, Inc. (NYSE:ELF), in the first quarter 2024 investor letter. E.l.f. Beauty, Inc. (NYSE:ELF) provides cosmetic and skin care products. The one-month return of E.l.f. Beauty, Inc. (NYSE:ELF) was 13.60%, and its shares gained 88.82% of their value over the last 52 weeks. On June 25, 2024, E.l.f. Beauty, Inc. (NYSE:ELF) stock closed at $208.76 per share with a market capitalization of $11.678 billion.
ClearBridge Multi Cap Growth Strategy stated the following regarding E.l.f. Beauty, Inc. (NYSE:ELF) in its first quarter 2024 investor letter:
“In consumer sectors, we added Tractor Supply Company and E.l.f. Beauty, Inc. (NYSE:ELF). ELF, in the consumer staples sector, is the third-largest mass cosmetics brand in the U.S. We believe the flywheel of ELF’s consumer value proposition, its innovation pipeline, and its unique ability to bring prestige-like products to mass consumers and high consumer engagement will enable the company to continue to outgrow the global market. We see significant opportunity for ELF to transform itself from an emerging U.S. color cosmetics brand to a global beauty stalwart by doubling its share in the U.S. over the next few years and gaining share in international and skincare markets. ELF is profitable, balancing growth and earnings, and has an attractive balance sheet.”
A close up of the lip and eye products from the company on a model in a fashion and beauty shoot.
E.l.f. Beauty, Inc. (NYSE:ELF) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held E.l.f. Beauty, Inc. (NYSE:ELF) at the end of the first quarter which was 34 in the previous quarter. E.l.f. Beauty, Inc. (NYSE:ELF) achieved over $1 billion in net sales in the year, experiencing a 77% growth in fiscal ’24. In the fiscal Q4 2024, ELF achieved a 71% increase in net sales, raised gross margin by around 180 basis points, and grew adjusted EBITDA by 93%. While we acknowledge the potential of E.l.f. Beauty, Inc. (NYSE:ELF) 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 E.l.f. Beauty, Inc. (NYSE:ELF) in another article and shared Artisan Small Cap Fund’s views on the company. 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.
