Here’s Why Bernzott Capital Sold its Position in LendingTree (TREE) at a Loss

Bernzott Capital Advisors, an investment management company, released its “US Small Cap Value Strategy’’ second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, on a net basis, the fund fell -17.73%, more than the R2000V’s decline of -15.28% and R2500V’s decline of -15.39%. Industrials and healthcare sectors contributed positively to the fund’s relative performance, whereas transportation, materials, and financial sectors hurt the fund’s performance.  In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Bernzott Capital Advisors discussed stocks like LendingTree, Inc. (NASDAQ:TREE) in the second quarter investor letter. Headquartered in Charlotte, North Carolina, LendingTree, Inc. (NASDAQ:TREE) is an online lending company. On September 8, 2022, LendingTree, Inc. (NASDAQ:TREE) stock closed at $33.80 per share. One-month return of LendingTree, Inc. (NASDAQ:TREE) was -27.85% and its shares lost 78.96% of their value over the last 52 weeks. LendingTree, Inc. (NASDAQ:TREE) has a market capitalization of $432.167 million.

Here is what Bernzott Capital Advisors specifically said about LendingTree, Inc. (NASDAQ:TREE) in its Q2 2022 investor letter:

“LendingTree, Inc. (NASDAQ:TREE): Very low mortgage rates, and then spiking higher, dampened demand for its mortgage lead generation business. At the same time, auto insurance lead generation has been experiencing an extended soft patch. Due to the uneven demand picture, we exited the position at a loss.”

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LendingTree, Inc. (NASDAQ:TREE) is not on the list of  30 Most Popular Stocks Among Hedge Funds. As per our database, LendingTree, Inc. (NASDAQ:TREE) was held by 14 hedge fund portfolios at the end of the second quarter, which was 21 in the previous quarter.

We discussed LendingTree, Inc. (NASDAQ:TREE) in another article and shared the list of stocks that Stephen Perkins’ Toronado Partners can’t live without. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

Disclosure: None. This article is originally published at Insider Monkey.