ClearBridge Investments Sold its Bandwidth Inc. (BAND) Due to Constrained Growth

ClearBridge Investments, an investment management company, published its “ClearBridge Small Cap Growth Strategy” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund declined and underperformed the Russell 2000 growth benchmark. The letter states that higher interest rates and current economic events influenced the performance of the fund.  You can check the top 5 holdings of the fund to know its best picks in 2022.

The letter mentioned that the fund underperformed in the second quarter due to market volatility. The fund exited its position from Bandwidth Inc. (NASDAQ:BAND). Bandwidth Inc. (NASDAQ:BAND) is a communication platform service provider headquartered in Raleigh, North Carolina. The stock of Bandwidth Inc. (NASDAQ:BAND) closed at $16.75 per share on August 1, 2022, and it has a market capitalization of $423.393 million. Bandwidth Inc. (NASDAQ:BAND) returned -19.47% in one month and its 12-month return dropped to -86.92%.

Here is what ClearBridge Investments specifically mentioned about Bandwidth Inc. (NASDAQ:BAND):

“We exited cloud communications software maker Bandwidth Inc. (NASDAQ:BAND) as price concessions to a large customer compromised profitability and a security breach last year constrained growth.”

Copyright: bluebay / 123RF Stock Photo

Our research shows that Bandwidth Inc. (NASDAQ:BAND) is not on our list of 30 Most Popular Stocks Among Hedge Funds. Bandwidth Inc. (NASDAQ:BAND) was in 20 hedge fund portfolios at the end of the first quarter and 20 in the previous quarter. Bandwidth Inc. (NASDAQ:BAND) shares lost 27.24% of their value over the last 3 months.

You can find another article on Bandwidth Inc. (NASDAQ:BAND) that we published in January and shared why billionaire Steve Cohen thinks the stock is a buy. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

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

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