Wasatch Global Investors, an investment management firm, released its “Wasatch Small Cap Growth Strategy” third quarter 2023 investor letter. A copy of the same can be downloaded here. Stocks fell broadly in the quarter as investors worried about the consequences of rising interest rates and a possible recession. During the quarter, the strategy declined but surpassed its benchmark, the Russell 2000 Growth Index, which fell -7.32% and the broader Russell 2000 Index lost -5.13%. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Wasatch Small Cap Growth Strategy highlighted stocks like HealthEquity, Inc. (NASDAQ:HQY) in the Q3 2023 investor letter. Headquartered in Draper, Utah, HealthEquity, Inc. (NASDAQ:HQY) provides financial technology solutions for healthcare spending decisions. On December 21, 2023, HealthEquity, Inc. (NASDAQ:HQY) stock closed at $65.33 per share. One-month return of HealthEquity, Inc. (NASDAQ:HQY) was -2.16%, and its shares gained 7.40% of their value over the last 52 weeks. HealthEquity, Inc. (NASDAQ:HQY) has a market capitalization of $5.605 billion.
Wasatch Small Cap Growth Strategy made the following comment about HealthEquity, Inc. (NASDAQ:HQY) in its Q3 2023 investor letter:
“Another strong position in the strategy was HealthEquity, Inc. (NASDAQ:HQY). The company is the largest U.S. non-bank custodian for health savings accounts (HSAs). HealthEquity also facilitates employer-sponsored lifestyle and commuter benefits, which include fitness classes, nutrition counseling, parking programs and transit passes. As of July 31, 2023, the company’s total HSA assets were up 13% from a year ago to $23.2 billion—$14.0 billion of which was held in cash with a duration of approximately three to four years. Reinvesting those funds at higher interest rates as they mature should accelerate HealthEquity’s top- and bottom-line growth over the next few years. The company’s commuter-benefit programs are also positioned to grow as at-home workers return to offices.”
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HealthEquity, Inc. (NASDAQ:HQY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held HealthEquity, Inc. (NASDAQ:HQY) at the end of third quarter which was 19 in the previous quarter.
We discussed HealthEquity, Inc. (NASDAQ:HQY) in another article and shared TimesSquare Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q3 2023 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.
