Here’s Why ClearBridge Investments Sold its Teladoc Health (TDOC) Stake

ClearBridge Investments, an investment management firm, published its “Mid Cap Growth Strategy” fourth quarter 2021 investor letter – a copy of which can be downloaded here. During the fourth quarter, the ClearBridge Mid Cap Growth Strategy outperformed its Russell Midcap Growth benchmark. On an absolute basis, the Strategy had gains across eight of the 10 sectors in which it was invested during the quarter (out of 11 sectors total), with the IT sector the leading contributor, while the consumer discretionary sector was the primary detractor. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

ClearBridge Investments Mid Cap Growth Strategy, in its Q4 2021 investor letter, mentioned Teladoc Health, Inc. (NYSE:TDOC) and discussed its stance on the firm. Founded in 2002, Teladoc Health, Inc. (NYSE:TDOC) is a Harrison, New York-based multinational telemedicine and virtual healthcare company with a $11.4 billion market capitalization, and is currently spearheaded by its CEO, Jason Gorevic Teladoc Health, Inc. (NYSE:TDOC) delivered a -22.44% return since the beginning of the year, while its 12-month returns are down by -59.99%. The stock closed at $71.22 per share on April 05, 2022.

Here is what ClearBridge Investments Mid Cap Growth Strategy has to say about Teladoc Health, Inc. (NYSE:TDOC) in its Q4 2021 investor letter:

“We also closed out of three names as we constantly seek ways to improve the Strategy’s overall growth profile. While health care industry usage of telemedicine has been increasing rapidly over the last several years, we exited provider Teladoc Health as the competitive dynamics intensified with other business models potentially encroaching on its positioning. The company’s recently acquired Livongo business has also been decelerating amid difficult comparisons and new competition. Oatly is a leader in dairy alternative oat-milk products benefiting from long-term secular growth of the category. That growth, however, is contingent on its ability to scale up manufacturing and we sold the position due to increased risk that global supply chain constraints would limit such efforts.”

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Our calculations show that Teladoc Health, Inc. (NYSE:TDOC) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Teladoc Health, Inc. (NYSE:TDOC) was in 39 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 40 funds in the previous quarter. Teladoc Health, Inc. (NYSE:TDOC) delivered a -15.54% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on Teladoc Health, Inc. (NYSE:TDOC) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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