Roubaix Capital LLC, an investment management firm, published its ‘Roubaix Fund Composite’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A net return of 26.63% was recorded by the fund for the Q4 of 2020, outperforming its HFRI Equity Hedge benchmark that delivered a 14.50% return but below its Russell 2000 index that had a 31.37% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Roubaix Capital, in their Q4 2020 Investor Letter, said that Repro Med Systems, Inc. (NASDAQ: KRMD) was the largest detractor for their portfolio in the fourth quarter of 2020. Repro Med Systems, Inc. is a medical device designer and manufacturing company that currently has a $192 million market cap. For the past 3 months, KRMD delivered a 9.25% return and settled at $4.37 per share at the closing of February 12th.
Here is what Roubaix Capital has to say about Repro Med Systems, Inc. in their Q4 2020 investor letter:
“The largest detractor in the long portfolio during the fourth quarter was Repro Med Systems (KRMD). We originally invested in KRMD due to their pump system that delivers drugs subcutaneously. This method of delivery is well suited for certain therapies and it can be done in the convenience of a patient’s home, replacing a visit to a doctor’s office. As a result, the patient has a better experience, and the healthcare system saves costs by avoiding the charges that come with office visits. We see more convenient and lower cost delivery of healthcare as a trend that will be accelerated by the pressures caused by the pandemic. Unfortunately for KRMD, their main product’s production is tied to the collection of blood plasma. As the pandemic kept people at home, supply became constrained. This put pressure on KRMD’s business, and their pipeline was not far enough along to provide an offset. We exited our position in the stock but continue to monitor it and other companies that benefit from this powerful trend to make healthcare delivery more efficient.”
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Video: Top 5 Stocks Among Hedge Funds
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