Here’s Why Olaplex Holdings (OLPX) Declined in Q4

TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” fourth-quarter investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy returned 4.18% (net), compared to 6.90% for the Russell Midcap Growth Index. For the calendar year, the strategy returned -22.13% (net) compared to the benchmark’s return of -26.72%. Weakness in Consumer Staples, Energy, Health Care, Information Technology, and Real Estate holdings led to the underperformance of the portfolio in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

TimesSquare U.S. Mid Cap Growth Strategy highlighted stocks like Olaplex Holdings, Inc. (NASDAQ:OLPX) in the fourth quarter 2022 investor letter. Headquartered in Santa Barbara, California, Olaplex Holdings, Inc. (NASDAQ:OLPX) is a haircare products manufacturer. On March 30, 2023, Olaplex Holdings, Inc. (NASDAQ:OLPX) stock closed at $4.090 per share. One-month return of Olaplex Holdings, Inc. (NASDAQ:OLPX) was -12.04%, and its shares lost 74.08% of their value over the last 52 weeks. Olaplex Holdings, Inc. (NASDAQ:OLPX) has a market capitalization of $2.686 billion.

TimesSquare U.S. Mid Cap Growth Strategy made the following comment about Olaplex Holdings, Inc. (NASDAQ:OLPX) in its Q4 2022 investor letter:

“In Consumer Staples, Olaplex Holdings, Inc. (NASDAQ:OLPX) is a technology-driven beauty company focused on developing patent-protected hair care products that are sold to hair salons, retailers, and directly to consumers. The combination of a large miss to third quarter estimates and guidance well below Street projections caused its shares to sell off by -51%. They expect professional channel sales to be lower for some time as salons work through existing inventory levels. We exited the position on this development.”

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Olaplex Holdings, Inc. (NASDAQ:OLPX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Olaplex Holdings, Inc. (NASDAQ:OLPX) at the end of the fourth quarter which was 18 in the previous quarter.

We discussed Olaplex Holdings, Inc. (NASDAQ:OLPX) in another article and shared Polen Capital’s views on the company. In addition, please check out our hedge fund investor letters Q4 2022 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.