Here’s Why Five Below (FIVE) Outperformed in the Third Quarter
Polen Capital, an investment management company, released its “Polen Global SMID Company Growth Strategy” third-quarter 2022 investor letter. A copy of the same can be downloaded here. The portfolio returned -8.88% net of fees in the third quarter compared to -6.04% return for the MSCI ACWI SMID Capitalization Index. Stock selection, sector allocation, and portfolio style led to the underperformance of the strategy in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Polen Capital discussed stocks like Five Below, Inc. (NASDAQ:FIVE) in the Q3 2022 investor letter. Headquartered in Philadelphia, Pennsylvania, Five Below, Inc. (NASDAQ:FIVE) is a specialty value retailer. On October 26, 2022, Five Below, Inc. (NASDAQ:FIVE) stock closed at $147.93 per share. One-month return of Five Below, Inc. (NASDAQ:FIVE) was 6.89% and its shares lost 23.72% of their value over the last 52 weeks. Five Below, Inc. (NASDAQ:FIVE) has a market capitalization of $8.211 billion.
Polen Capital made the following comment about Five Below, Inc. (NASDAQ:FIVE) in its Q3 2022 investor letter:
"Five Below, Inc. (NASDAQ:FIVE) is a leading, high-growth, value retailer in the United States. The stock outperformed, in part due to a relief in selling pressure across retail stocks, but also as the company reported second quarter earnings. While revenues and earnings for the quarter were marginally below expectations, in a backdrop of slowing retail demand Five Below is seen to have an attractive value proposition with products that deliver on value as the customer wallet shrinks. We believe the company can compound its value over the next five years, driven by a combination of midteens new store expansion, comparable store growth, and modest margin expansion off its fixed cost leverage."
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Five Below, Inc. (NASDAQ:FIVE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Five Below, Inc. (NASDAQ:FIVE) at the end of the second quarter which was 37 in the previous quarter.
We discussed Five Below, Inc. (NASDAQ:FIVE) in another article and shared Polen Capital’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.
