Is it a Good Choice to Invest in Cross Country Healthcare (CCRN)?

Rhizome Partners, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. For the fourth quarter of 2021, Rhizome Partners generated a net gain of 6.7% versus an 11.0% gain for the Standard & Poor’s 500 Index and a 16.2% gain for the National Association of Real Estate Investment Trusts (NAREIT) Index. For the year, Rhizome Partners Class B returned 24.9% versus 28.7% for the S&P 500 and 41.3% for the NAREIT. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Rhizome Partners, in its Q4 2021 investor letter, mentioned Cross Country Healthcare, Inc. (NASDAQ: CCRN) and discussed its stance on the firm. Cross Country Healthcare, Inc. is a Boca Raton, Florida-based healthcare staffing, recruiting, and workforce solutions provider with a $798.0 million market capitalization. CCRN delivered a -24.35% return since the beginning of the year, while its 12-month returns are up by 108.75%. The stock closed at $21.00 per share on February 23, 2022.

Here is what Rhizome Partners has to say about Cross Country Healthcare, Inc. in its Q4 2021 investor letter:

“Our two staffing companies performed exceptionally well during 2021. Both HireQuest and Cross Country benefited greatly from sharp rebounds of operating results over 2020. Both companies are also jockey bets. We’re excited to watch Rick Hermanns continue to acquire staffing operators and convert them to franchises. There is likely a multiyear runway to roll up various smaller players. Cross Country has impressed us with cost-cutting initiatives that improved EBITDA margin from around 3% to around 8% today. Kevin Clark’s return to the company as CEO has been instrumental to these transformations.”

Source: Unsplash

Our calculations show that Cross Country Healthcare, Inc. (NASDAQ: CCRN) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. CCRN was in 19 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 22 funds in the previous quarter. Cross Country Healthcare, Inc. (NASDAQ: CCRN) delivered a -25.72% return in the past 3 months.

In May 2021, we published an article that includes CCRN in the 10 Best Staffing Company Stocks to Buy. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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