What Makes RH (RH) an Interesting Investment Opportunity?
Polen Capital, an investment management company, released its “Polen U.S. Small Company Growth Strategy” fourth-quarter investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund delivered 3.46% net of fees compared to a 4.13% return for the Russell 2000 Growth Index. Style factor headwinds and relative sector positioning offset the positive stock selection in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Polen Capital highlighted stocks like RH (NYSE:RH) in the fourth quarter 2022 investor letter. Headquartered in Corte Madera, California, RH (NYSE:RH) is a home furnishings retailer. On January 24, 2023, RH (NYSE:RH) stock closed at $306.42 per share. One-month return of RH (NYSE:RH) was 17.83%, and its shares lost 19.08% of their value over the last 52 weeks. RH (NYSE:RH) has a market capitalization of $7.067 billion.
Polen Capital made the following comment about RH (NYSE:RH) in its Q4 2022 investor letter:
“RH (NYSE:RH) is a leading luxury retailer in home furnishings, including high end luxury furniture, home décor, lighting, textiles, etc. We have a long history with RH as an existing holding in our U.S. SMID strategy, and we capitalized on the market volatility to add it to the Portfolio. The company’s competitive advantage stems from the strength of its brand and its unique—and often misunderstood—business model, which has allowed RH to build a luxury empire at scale and with high returns on capital. We believe RH has a long runway to expand into other home furnishings categories, expand its footprint internationally, and launch new luxury categories. While the business faces near-term challenges, and the stock’s valuation reflects this, we are confident in the company’s long-term prospects and the long track record of CEO Gary Friedman.”
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RH (NYSE:RH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held RH (NYSE:RH) at the end of the third quarter, which was 59 in the previous quarter.
We discussed RH (NYSE:RH) in another article and shared Miller Value Partners’ 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.
