Is Natus Medical Incorporated (NTUS) A Great Long-Term Investment?

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Small Cap Fund” fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The portfolio outpaced the Russell 2000® Index in the quarter, adding to full-year outperformance. Relative performance was aided by our below-benchmark health care exposure, particularly our lack of exposure to biotechnology stocks which were down nearly 13% in the quarter and represent almost half the sector’s weight Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Diamond Hill Small Cap Fund, in its Q4 2021 investor letter, mentioned Natus Medical Incorporated (NASDAQ: NTUS) and discussed its stance on the firm. Natus Medical Incorporated is a Pleasanton, California-based medical device company with a $929.2 million market capitalization. NTUS delivered a 14.66% return since the beginning of the year, while its 12-month returns are up by 5.02%. The stock closed at $27.21 per share on February 25, 2022.

Here is what Diamond Hill Small Cap Fund has to say about Natus Medical Incorporated in its Q4 2021 investor letter:

“Natus Medical is a med tech company focusing on niche areas of healthcare (neurology, newborn care, and hearing) where it has market-leading share. During the quarter, shareholders were surprised by an announcement the CEO was stepping down. The company moved to appoint a new CEO who had been on the Natus board of directors for three years and has held a number of leadership positions in the industry. We are monitoring for the new CEO’s strategy to drive growth; however, we do believe the company has been heading in the right direction, as it has been working to resolve quality issues over the past few years, divest underperforming product lines and drive margins.”

Photo by National Cancer Institute on Unsplash

Our calculations show that Natus Medical Incorporated (NASDAQ: NTUS) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. NTUS was in 21 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 21 funds in the previous quarter. Natus Medical Incorporated (NASDAQ: NTUS) delivered a 12.02% return in the past 3 months. You can find other 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.