White Brook Capital Partners, an investment management firm, released its first-quarter investor letter. The same can be downloaded here. In the first quarter, the fund underperformed and was down 2.33% compared to the Midcap 400 Index’s 3.81% and the S&P 500 Index’s 7.49% returns. In January and February, the portfolio performed well, however, it suffered banking sector declines later. In addition, please check the fund’s top five holdings to know its best picks in 2023.
White Brook Capital highlighted stocks like Afya Limited (NASDAQ:AFYA) in the first quarter 2023 investor letter. Headquartered in Nova Lima, Brazil, Afya Limited (NASDAQ:AFYA) is a medical education group. On April 21, 2023, Afya Limited (NASDAQ:AFYA) stock closed at $12.09 per share. One-month return of Afya Limited (NASDAQ:AFYA) was 13.95%, and its shares lost 9.44% of their value over the last 52 weeks. Afya Limited (NASDAQ:AFYA) has a market capitalization of $1.087 billion.
White Brook Capital made the following comment about Afya Limited (NASDAQ:AFYA) in its Q1 2023 investor letter:
“Afya Limited (NASDAQ:AFYA), the Brazilian medical school company, declined almost 30% in the quarter. Reasons for the decline leave me wanting. The Company missed headline fourth quarter earnings expectations –but the miss was slight. The Company continues to grow revenue and EBITDA by approximately 20% per year while generating impressive free cash flow and trading for reasonable multiples of cash flow. The underlying medical education business prospects are bright, with the Brazilian education ministry likely to continue to grow available medical education seats, Afya’s reputation continuing its ascent, and its more rural roots a benefit to future government plans.
Its online SaaS businesses have proven less profitable than hoped, but they continue to grow while being refocused on running profitably. Further acquisitions in the space are likely to be limited, with additional products added to the platform organically or through small acquisitions. The biggest obstacle to growing our position is that getting much bigger would violate White Brook’s average daily trading volume-based risk mitigation restrictions. We continue to hold, have not sold shares, and would grow the position if shares were more available to trade. That said, the Company, despite its already low float, also believes its shares are undervalued and is buying back shares.”
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Afya Limited (NASDAQ:AFYA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Afya Limited (NASDAQ:AFYA) at the end of the fourth quarter which was 7 in the previous quarter.
We discussed Afya Limited (NASDAQ:AFYA) in another article and shared Baron Funds’ views on the company. In addition, please check out our hedge fund investor letters Q1 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.
