Here’s Why e.l.f. Beauty (ELF) Declined in Q4

Core Insights - ClearBridge Investments reported a strong but volatile performance in US equities for Q4 2025, with the S&P 500 Index returning 2.7% and the Russell Midcap Growth Index declining 3.7% [1] - The ClearBridge Growth Strategy achieved its third consecutive quarter of outperformance through a balanced and highly active share approach, maintaining disciplined portfolio management and opportunistic capital allocation [1] Company Highlights - E.l.f. Beauty, Inc. (NYSE:ELF) is highlighted as a key stock, closing at $87.02 per share on January 9, 2026, with a one-month return of 13.96% but a 52-week decline of 30.32% [2] - E.l.f. Beauty, Inc. has a market capitalization of $5.19 billion [2] - The company faced pressure in sales growth due to management's decision to halt shipments to retailers that were slow to implement tariff-related price increases, although consumption trends for the brand remain healthy [3] Market Position - E.l.f. Beauty, Inc. was held by 43 hedge fund portfolios at the end of Q3 2025, indicating stable interest among hedge funds [4] - Despite its potential, the company is not considered among the 30 most popular stocks among hedge funds, with some analysts suggesting that certain AI stocks may offer greater upside potential [4]