Should You Consider Exiting NIKE (NKE) Now?
Polen Capital, an investment management company, released its “Polen Global Growth Strategy” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The fund returned 6.37% net in the fourth quarter compared to a return of 9.76% for the MSCI ACW Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Polen Global Growth Strategy highlighted stocks like NIKE, Inc. (NYSE:NKE) in the Q4 2022 investor letter. Headquartered in Beaverton, Oregon, NIKE, Inc. (NYSE:NKE) designs and develops athletic footwear, apparel, equipment, and accessories. On February 8, 2023, NIKE, Inc. (NYSE:NKE) stock closed at $122.91 per share. One-month return of NIKE, Inc. (NYSE:NKE) was -3.89%, and its shares lost 15.13% of their value over the last 52 weeks. NIKE, Inc. (NYSE:NKE) has a market capitalization of $190.579 billion.
Polen Global Growth Strategy made the following comment about NIKE, Inc. (NYSE:NKE) in its Q4 2022 investor letter:
“While we believe NIKE, Inc. (NYSE:NKE) remains a unique and advantaged business with solid long-term growth prospects, the company also faces a variety of challenges in the near term. In addition to ongoing challenges in China, due to zero-COVID policies, and substantial currency headwinds from the recent strengthening of the U.S. dollar, supply chain challenges have resulted in bloated inventories. The company will need to discount and liquidate some of its inventory to clear the way for new product in what may be a slowing and likely more promotional environment. We have effectively used the proceeds from sales of adidas and Nike to add positions in L’Oreal and Estée Lauder, which we think will prove to be strong long-term investments.”
NIKE, Inc. (NYSE:NKE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held NIKE, Inc. (NYSE:NKE) at the end of the third quarter, which was 72 in the previous quarter.
We discussed NIKE, Inc. (NYSE:NKE) in another article and shared the list of best value dividend stocks to buy. 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.
