Wasatch Global Investors, an investment management firm, released its “Wasatch Small Cap Growth Strategy” third quarter 2023 investor letter. A copy of the same can be downloaded here. Stocks fell broadly in the quarter as investors worried about the consequences of rising interest rates and a possible recession. During the quarter, the strategy declined but surpassed its benchmark, the Russell 2000 Growth Index, which fell -7.32% and the broader Russell 2000 Index lost -5.13%. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Wasatch Small Cap Growth Strategy highlighted stocks like Five Below, Inc. (NASDAQ:FIVE) in the third quarter 2023 investor letter. Headquartered in Philadelphia, Pennsylvania, Five Below, Inc. (NASDAQ:FIVE) is a specialty value retailer. On December 21, 2023, Five Below, Inc. (NASDAQ:FIVE) stock closed at $199.10 per share. One-month return of Five Below, Inc. (NASDAQ:FIVE) was 4.24%, and its shares gained 16.88% of their value over the last 52 weeks. Five Below, Inc. (NASDAQ:FIVE) has a market capitalization of $10.989 billion.
Wasatch Small Cap Growth Strategy made the following comment about Five Below, Inc. (NASDAQ:FIVE) in its Q3 2023 investor letter:
“Another weak stock in the strategy was Five Below, Inc. (NASDAQ:FIVE). This discount retailer has set itself apart with its branding and unique approach of, as its name suggests, pricing most items at five dollars or less. Second-quarter revenues and earnings met expectations, and management projected that third- and fourth-quarter revenues would be in line with forecasts and better than industry peer comparisons. But the stock was down because upcoming quarterly margins and earnings are projected to decline due to theft and expenses associated with theft prevention. While this news was disappointing, we think management has responded appropriately. We still expect the company’s new-store growth rate to accelerate from the low teens to the high teens over the next 12 months. Five Below plans to add approximately 250 new locations, which we think will position the company to take advantage of both the 2023 and 2024 holiday shopping seasons.”
A shopper browsing through a discount retailers merchandise aisle filled with a wide variety of items.
Five Below, Inc. (NASDAQ:FIVE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Five Below, Inc. (NASDAQ:FIVE) at the end of third quarter which was 37 in the previous quarter.
We discussed Five Below, Inc. (NASDAQ:FIVE) in another article and shared Polen Global SMID Company Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 15 Most Advanced Countries in Renewable Energy
- 35 Best Countries For Raising Kids
- 25 Best Countries for Women in Terms of Economic Opportunity
Disclosure: None. This article is originally published at Insider Monkey.
