Here’s Why ClearBridge Investments Disposed its Sprouts Farmers Market (SFM) Shares

ClearBridge Investments, an investment management firm, published its “Small Cap Value Strategy” third-quarter 2022 investor letter – a copy of which can be downloaded here. The ClearBridge Small Cap Value Strategy underperformed its Russell 2000 Value Index benchmark during the third quarter. On an absolute basis, the Strategy had losses in eight out of 11 sectors in which it was invested during the quarter. The leading detractors were the IT and financial sectors while the energy, consumer staples, and healthcare sectors were the positive contributors. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.

In its Q3 2022 investor letter, ClearBridge Small Cap Value Strategy mentioned Sprouts Farmers Market, Inc. (NASDAQ:SFM) and explained its insights for the company. Founded in 2002, Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a Phoenix, Arizona-based supermarket company with a $3.4 billion market capitalization. Sprouts Farmers Market, Inc. (NASDAQ:SFM) delivered a 8.36% return since the beginning of the year, while its 12-month returns are up by 33.67%. The stock closed at $32.16 per share on November 09, 2022.

Here is what ClearBridge Small Cap Value Strategy has to say about Sprouts Farmers Market, Inc. (NASDAQ:SFM) in its Q3 2022 investor letter:

“We exited a number of stocks during the period, including Sprouts Farmers Market (NASDAQ:SFM). Strong investor sentiment for consumer staples helped bolster Sprouts’s stock price to a level we believe reflected the fair value of the company, and we exited the position to capture the positive returns on the stock.”

Nejron Photo/Shutterstock.com

Our calculations show that Sprouts Farmers Market, Inc. (NASDAQ:SFM) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Sprouts Farmers Market, Inc. (NASDAQ:SFM) was in 24 hedge fund portfolios at the end of the second quarter of 2022, compared to 24 funds in the previous quarter. Sprouts Farmers Market, Inc. (NASDAQ:SFM) delivered a 6.77% return in the past 3 months.

In August 2022, we also shared another hedge fund’s views on Sprouts Farmers Market, Inc. (NASDAQ:SFM) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.

Suggested Articles:

• 12 Best Reddit Stocks To Buy
• 12 Best Financial Dividend Stocks To Buy
• 12 Best Blue Chip Stocks To Buy Today

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