Here’s Why Burlington Stores (BURL) Detracted in Q2
ClearBridge Investments, an investment management firm, released its second-quarter 2023 “Mid Cap Growth Strategy” investor letter, a copy of which can be downloaded here. Mid-cap stocks posted positive gains in the quarter, as signs of economic robustness, moderate inflation, and stronger-than-expected corporate earnings helped boost equity markets. The strategy outperformed its Russell Midcap Growth Index during the second quarter. On an absolute basis, the strategy gained eight of the 10 sectors in which it was invested during the quarter. IT and industrials sectors were the leading contributors while the consumer discretionary sector detracted. Overall stock selection positively contributed to performance on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2023.
ClearBridge Mid Cap Growth Strategy highlighted stocks like Burlington Stores, Inc. (NYSE:BURL) in the second quarter 2023 investor letter. Headquartered in Burlington, New Jersey, Burlington Stores, Inc. (NYSE:BURL) is a branded apparel retailer. On September 15, 2023, Burlington Stores, Inc. (NYSE:BURL) stock closed at $147.78 per share. One-month return of Burlington Stores, Inc. (NYSE:BURL) was -13.45%, and its shares gained 6.53% of their value over the last 52 weeks. Burlington Stores, Inc. (NYSE:BURL) has a market capitalization of $9.584 billion.
ClearBridge Mid Cap Growth Strategy made the following comment about Burlington Stores, Inc. (NYSE:BURL) in its Q2 2023 investor letter:
"Stock selection in the consumer discretionary sector proved to be the largest detractor from performance, led by Burlington Stores, Inc. (NYSE:BURL), an apparel and accessories retailer that offers a wide variety of products at discount prices. The market negatively reacted to the company’s first quarter earnings, which highlighted challenges the company faced as its core, lower-income consumer demographic continues to be impacted by inflationary pressures."
Burlington Stores, Inc. (NYSE:BURL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Burlington Stores, Inc. (NYSE:BURL) at the end of second quarter which was 40 in the previous quarter.
We discussed Burlington Stores, Inc. (NYSE:BURL) in another article and shared the list of undervalued cyclical stocks to buy. In addition, please check out our hedge fund investor letters Q2 2023 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.
