Should You Hold Masimo Corporation (MASI)?

Ensemble Capital Management, an investment management company, released its 2022 annual investor letter. A copy of the same can be downloaded here. For the fiscal year ended October 31, 2022, the fund returned -29.33% compared to a total return of -14.61% for the benchmark S&P 500 Index for the same period. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Ensemble Capital highlighted stocks like Masimo Corporation (NASDAQ:MASI) in the 2022 annual investor letter. Headquartered in Irvine, California, Masimo Corporation (NASDAQ:MASI) is a technology company. On January 13, 2023, Masimo Corporation (NASDAQ:MASI) stock closed at $156.75 per share. One-month return of Masimo Corporation (NASDAQ:MASI) was 9.93%, and its shares lost 32.75% of their value over the last 52 weeks. Masimo Corporation (NASDAQ:MASI) has a market capitalization of $8.24 billion.

Ensemble Capital made the following comment about Masimo Corporation (NASDAQ:MASI) in its 2022 annual investor letter:

Masimo Corporation (NASDAQ:MASI) (4.43%* weight in Fund): Masimo fell 59%, contributing -2.56% to the Fund’s relative performance. In February, Masimo announced the surprising acquisition of consumer audio company Sound United causing the stock to fall 35% on the day of the announcement. While Masimo has long communicated their intention to bring their hospital based, health sensor technology into the home as part of their mission to lower the cost of health care and improve patient outcomes, their acquisition of Sound United was an unexpected approach to executing this strategy. Compounding investors’ concerns, Masimo declined to offer a detailed explanation of the Sound United acquisition, stating that in order to avoid alerting competitors to their intentions they would explain the deal at an Investor Day currently scheduled for December 2022.”

Masimo Corporation (NASDAQ:MASI) is not on our 30 Most Popular Stocks Among Hedge Funds list. As per our database, 38 hedge fund portfolios held Masimo Corporation (NASDAQ:MASI) at the end of the third quarter, which was 31 in the previous quarter.

We discussed Masimo Corporation (NASDAQ:MASI) in another article and shared Ensemble Capital Management’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2022 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.