Should You Add Gildan Activewear (GIL) to Your Portfolio Now?

Wedgewood Partners, an investment management company, released its “Focused SMID Cap Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 14.8% compared to a 7.4% return for the Russell 2500 Index. For the year 2022, the fund returned -19.0% compared to a -18.4% return for the benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Wedgewood Partners highlighted stocks like Gildan Activewear Inc. (NYSE:GIL) in the fourth quarter 2022 investor letter. Headquartered in Montreal, Canada, Gildan Activewear Inc. (NYSE:GIL) is an apparel products manufacturer. On March 6, 2023, Gildan Activewear Inc. (NYSE:GIL) stock closed at $32.88 per share. One-month return of Gildan Activewear Inc. (NYSE:GIL) was 10.19%, and its shares lost 6.91% of their value over the last 52 weeks. Gildan Activewear Inc. (NYSE:GIL) has a market capitalization of $5.909 billion.

Wedgewood Partners made the following comment about Gildan Activewear Inc. (NYSE:GIL) in its Q4 2022 investor letter:

“Gildan Activewear Inc. (NYSE:GIL) detracted from performance during the quarter. The stock is already discounting a 2008-2009 recessionary scenario yet the fundamental backdrop are far from that purported scenario. Revenues and earnings grew at mid-single digit rates, in contrast to the well-publicized inventory adjustments in the mass-market retail channel. The Company’s core activewear segment managed to grow +13%, driven by strong growth in the screen print channel, which has avoided much of the carnage in the mass-market retail channel. The downturn in the mass-market retail channel should serve to winnow even more of Gildan’s competition that wasn’t already driven out during the Pandemic. Meanwhile the Company has been building capacity in attractively located geographies in order to take this share. We took advantage of the overly dour sentiment in Gildan by adding to our position during the quarter.”

lan-deng-quddu_dZKkQ-unsplash

Gildan Activewear Inc. (NYSE:GIL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Gildan Activewear Inc. (NYSE:GIL) at the end of the fourth quarter which was 20 in the previous quarter.

We discussed Gildan Activewear Inc. (NYSE:GIL) in another article and shared the list of biggest luxury companies in the world. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

• 11 High Growth Monthly Dividend Stocks to Buy
• Top 15 Independent Oil and Gas Companies in the World
• 15 Large Cap Stocks Hedge Funds are Dumping

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