Here’s Why ClearBridge Sold its Monro (MNRO) Position

ClearBridge Investments, an investment management firm, published its “SMID Cap Growth Strategy” fourth quarter 2021 investor letter – a copy of which can be downloaded here. During the fourth quarter, the ClearBridge SMID Cap Growth Strategy outperformed its Russell 2500 Growth Index benchmark. On an absolute basis, the Strategy had gains across seven of the 10 sectors in which it was invested during the quarter (out of 11 sectors total), with the industrials sector the leading contributor, while the consumer discretionary and IT sectors were the primary detractors.  Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

ClearBridge Investments SMID Cap Growth Strategy, in its Q4 2021 investor letter, mentioned Monro, Inc. (NASDAQ:MNRO)and discussed its stance on the firm. Founded in 1957, Monro, Inc. (NASDAQ:MNRO) is a Rochester, New York-based automotive repair and maintenance company with a $1.5 billion market capitalization and is currently spearheaded by its CEO, Michael Broderick. Monro, Inc. (NASDAQ:MNRO) delivered a -20.54% return since the beginning of the year, while its 12-month returns are down by -29.64%. The stock closed at $46.30 per share on March 29, 2022.

Here is what ClearBridge Investments SMID Cap Growth Strategy has to say about Monro, Inc. (NASDAQ:MNRO) in its Q4 2021 investor letter:

“We also closed out of four names during the quarter. We exited auto maintenance and repair provider Monro due to inconsistent execution, management churn and as a source of capital for other opportunities and took advantage of the rally of energy stocks.”

tim-mossholder-V37iTrYZz2E-unsplash

Our calculations show that Monro, Inc. (NASDAQ:MNRO) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Monro, Inc. (NASDAQ:MNRO) was in 13 hedge fund portfolios at the end of the fourth quarter of 2021. Monro, Inc. (NASDAQ:MNRO) delivered a -22.24% return in the past 3 months. 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.