Wedgewood Partners, an investment management company, released its “Focused SMID Cap Strategy” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -5.3% compared to a return of -2.8% for the Russell 2500 Index. Since inception, the fund returned 8.2% compared to 5.4% for its benchmark index. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Wedgewood Partners highlighted stocks like Helen of Troy Limited (NASDAQ:HELE) in the Q3 2022 investor letter. Headquartered in El Paso, Texas, Helen of Troy Limited (NASDAQ:HELE) is a consumer products company. On November 3, 2022, Helen of Troy Limited (NASDAQ:HELE) stock closed at $88.95 per share. One-month return of Helen of Troy Limited (NASDAQ:HELE) was -11.09% and its shares lost 62.25% of their value over the last 52 weeks. Helen of Troy Limited (NASDAQ:HELE) has a market capitalization of $2.121 billion.
Wedgewood Partners made the following comment about Helen of Troy Limited (NASDAQ:HELE) in its Q3 2022 investor letter:
“Helen of Troy Limited (NASDAQ:HELE) was a detractor in the quarter as the Company continues to deal with a variety of headwinds. The Company’s healthcare and housewares businesses were major beneficiaries during the pandemic, and both we and the Company have been expecting a normalization of demand in this business. Further, the post-pandemic normalization of demand patterns at major customers such as Walmart, Target, and Amazon have further weighed on the Company – both in terms of fundamentals and in terms of market sentiment, plus stock valuation. Finally, decades-high inflation in key consumer staples categories such as food and other necessities has diverted some spending away from the more discretionary product categories supplied by Helen of Troy. Despite all these headwinds, the Company has been able to hold on to most of the business that it gained during the Pandemic. Revenues in the most recent quarter were +26% above the same quarter two years ago, and we find the stock’s valuation to be extremely attractive at the moment, at levels last seen in the 2008- 2009 recession period, when the Company was under former (and, in our opinion, inept) management.”
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Helen of Troy Limited (NASDAQ:HELE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Helen of Troy Limited (NASDAQ:HELE) at the end of the second quarter, which was 16 in the previous quarter.
We discussed Helen of Troy Limited (NASDAQ:HELE) in another article and shared the list of best hair care stocks to invest in. In addition, please check out our hedge fund investor letters Q3 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.
