FAM Funds, Still Optimistic in their U.S. Physical Therapy (USPH) Position

FAM Funds, an investment management firm, published its ‘FAM Small Cap Fund’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 10.10% was recorded by the fund for the year end 2020, underperforming its Russell 2000 benchmark that returned 19.9%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

FAM Funds, in their Q4 2020 Investor Letter said that they acquired a position in U.S. Physical Therapy, Inc. (NYSE: USPH), and continuously holds the company despite being tremendously devastated by the pandemic. U.S. Physical Therapy, Inc. is a health care company that currently has a $1.5 billion market cap. For the past 3 months, USPH delivered a decent 51.7% return and settled at $120.34 per share at the closing of January 29th.

Here is what FAM Funds has to say about U.S. Physical Therapy, Inc. in their investor letter:

“USPH is one of the largest operators of physical therapy offices. Typically, they partner with a local physical therapist who is well positioned to obtain referrals from local doctors. USPH handles the business aspects and the local partner focuses on building relationships and serving patients. While hurt by a drop in non-essential surgeries and sports injuries, we expected patient volumes to rebuild eventually and recent volumes are much better. Additionally, we expect that USPH should continue to organically add offices and purchase small competitors for many years.”

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Last December 2020, we published an article telling that U.S. Physical Therapy, Inc. (NYSE: USPH) was in 10 hedge fund portfolios. Its all time high statistics is 16. USPH delivered a 2.73% return in the past 12 months.

Our calculations show that U.S. Physical Therapy, Inc. (NYSE: USPH) does not belong in our list of the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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