Home Hedge Funds Is it Still Safe to Invest in Ross Stores (ROST)?

Is it Still Safe to Invest in Ross Stores (ROST)?


Madison Funds, managed by Madison Asset Management, LLC, released its “Madison Mid Cap Fund” third quarter 2022 investor letter – a copy of which can be downloaded here. The Madison Mid Cap Fund (Class Y) was down -3.39% in the third quarter, compared to the -3.44% decline in the benchmark Russell Midcap Index. The Fund (-21.13%) remains ahead of the benchmark (-24.27%) for the year-to-date period as well. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.

In its Q3 2022 investor letter, Madison Mid Cap Fund mentioned Ross Stores, Inc. (NASDAQ:ROST) and explained its insights for the company. Founded in 1982, Ross Stores, Inc. (NASDAQ:ROST) is a Dublin, California-based discount store company with a $32.8 billion market capitalization. Ross Stores, Inc. (NASDAQ:ROST) delivered a -18.28% return since the beginning of the year, while its 12-month returns are down by -17.33%. The stock closed at $94.60 per share on October 27, 2022.

Here is what Madison Mid Cap Fund has to say about Ross Stores, Inc. (NASDAQ:ROST) in its Q3 2022 investor letter:

Ross Stores is one of our longest-tenured holdings. Its profits have gyrated wildly since the beginning of the pandemic, first from store closures and shutdowns, then from the pent-up demand for apparel, and more recently, from the economic uncertainty. Adding to that, Ross is finding that consumers’ spending trends in terms of mix and categories have been more difficult to predict than usual, resulting in some mismatches between its merchandise assortment and what shoppers want. This doesn’t appear to be a Ross-specific issue, as other apparel retailers have reported similar problems. We attribute this to the unusual post-pandemic environment, and while we don’t have a crystal ball as to when this will normalize, we believe it will.”

Photo by Franki Chamaki on Unsplash

Our calculations show that Ross Stores, Inc. (NASDAQ:ROST) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Ross Stores, Inc. (NASDAQ:ROST) was in 46 hedge fund portfolios at the end of the second quarter of 2022, compared to 44 funds in the previous quarter. Ross Stores, Inc. (NASDAQ:ROST) delivered a 14.73% return in the past 3 months.

In September 2022, we also shared another hedge fund’s views on Ross Stores, Inc. (NASDAQ:ROST) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.


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Disclosure: None. This article is originally published at Insider Monkey.

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