What Makes Etsy (ETSY) Special Compared to its Peers?

·2 min read

ClearBridge Investments, an investment management firm, published its “Mid Cap Strategy” fourth quarter 2022 investor letter. A copy of which can be downloaded here. During the fourth quarter, the strategy underperformed the Russell Midcap Index. On an absolute basis, the strategy gained in 10 of the 11 sectors it invested in during the quarter. The consumer staples, industrials, and financial sectors were the leading contributors while the healthcare sector trailed the performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.

ClearBridge Mid Cap Strategy highlighted stocks like Etsy, Inc. (NASDAQ:ETSY) in the fourth quarter 2022 investor letter. Headquartered in Brooklyn, New York, Etsy, Inc. (NASDAQ:ETSY) is an online marketplace that connects buyers and sellers. On March 14, 2023, Etsy, Inc. (NASDAQ:ETSY) stock closed at $102.79 per share. One-month return of Etsy, Inc. (NASDAQ:ETSY) was -27.74%, and its shares lost 23.18% of their value over the last 52 weeks. Etsy, Inc. (NASDAQ:ETSY) has a market capitalization of $12.813 billion.

ClearBridge Mid Cap Strategy made the following comment about Etsy, Inc. (NASDAQ:ETSY) in its Q4 2022 investor letter:

"We initiated a new position in Etsy, Inc. (NASDAQ:ETSY), in the consumer discretionary sector, which operates online marketplaces and is a leading e-commerce destination for craft and artisan goods. The company has been making strong gains within the e-commerce industry, with opportunity to grow its footprint with male customers and capitalize on international opportunities. Improvement in search algorithms has better personalized the shopping experience, leading to improved sales conversion for its merchants. While the company has faced headwinds in overcoming the extraordinarily high comps of the COVID-19 pandemic, we see early signs the business is stabilizing. Combined with the company’s strong balance sheet and cash flow and lack of proprietary inventory, we see Etsy as better positioned to navigate a weakened economic environment than its peers."

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Etsy, Inc. (NASDAQ:ETSY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Etsy, Inc. (NASDAQ:ETSY) at the end of the fourth quarter which was 45 in the previous quarter.

We discussed Etsy, Inc. (NASDAQ:ETSY) in another article and shared the list of Jim Cramer's February stocks. 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.