Here’s How Chemed Corp. (CHE) Building Long-Term Shareholder Value

LRT Capital Management, an investment management company, released its “LRT Global Opportunities Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy leverages a systematic long/short approach to generate positive returns while effectively controlling downside risks and maintaining low net exposure to the equity markets. In September, the strategy returned -8.00% (net), and the YTD return was -0.17%. It was a challenging month for the strategy, as the market indexes surged, with a select few highly overvalued mega-cap stocks, while the rest of the market declined. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, LRT Global Opportunities Strategy highlighted stocks such as Chemed Corporation (NYSE:CHE). Chemed Corporation (NYSE:CHE) is a company that provides hospice care and maintenance services, operating through its VITAS and Roto-Rooter segments. The one-month return of Chemed Corporation (NYSE:CHE) was 5.91%, and its shares lost 25.88% of their value over the last 52 weeks. On October 6, 2025, Chemed Corporation (NYSE:CHE) stock closed at $435.38 per share, with a market capitalization of $6.344 billion.

LRT Global Opportunities Strategy stated the following regarding Chemed Corporation (NYSE:CHE) in its third quarter 2025 investor letter:

“Chemed Corporation (NYSE:CHE) represents a unique and highly successful holding company, operating two distinct, market-leading businesses in entirely non-correlated sectors: VITAS Healthcare, the nation’s largest provider of end-of-life hospice care, and Roto-Rooter, the premier provider of plumbing and drain cleaning services in North America. This unconventional structure is masterfully managed with a disciplined focus on operational excellence and shareholder-friendly capital allocation, creating a remarkably resilient and durable compounding enterprise.

The cornerstone of the Chemed portfolio is VITAS Healthcare. As a category-defining leader in hospice care, VITAS benefits from one of the most powerful and predictable secular tailwinds: the aging of the U.S. population. The demand for high-quality, compassionate end-of-life care is set for a multi-decade expansion, and VITAS is uniquely positioned to meet this need. Its competitive moat is built on its immense scale, its clinical expertise in managing complex patient needs, and its deep, long-standing relationships with referral sources within the healthcare community. The business operates under the stable and predictable reimbursement framework of the Medicare hospice benefit, which provides excellent revenue visibility..…” (Click here to read the full text)

In another article, we covered Chemed Corporation (NYSE:CHE) and shared the list of best and cheap stocks to buy. In addition, please check out our hedge fund investor letters Q3 2025 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.