Summers Value Partners, an investment management firm, published its “Summers Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The Summers Value Fund LP (“the Fund”) returned 43.4% net for the full year 2021, outpacing the Russell 2000 Index ETF return of 13.7% and the Russell Micro-Cap Index ETF return of 17.8%. In the fourth quarter, the Fund returned 8.0% net1 relative to the Russell 2000 Index ETF return of 1.9% and the Russell Micro-Cap Index ETF return of -3.2%. The Fund has generated a cumulative 77.7% net1 return since inception compared to the Russell 2000 Index ETF return of 36.2% and the Russell Micro-Cap Index ETF return of 32.9% over the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Summers Value Partners, in its Q4 2021 investor letter, mentioned ModivCare Inc. (NASDAQ: MODV) and discussed its stance on the firm. ModivCare Inc. is a Denver, Colorado-based technology-enabled healthcare services company with a $1.5 billion market capitalization. MODV delivered a -25.52% return since the beginning of the year, while its 12-month returns are down by -34.59%. The stock closed at $110.45 per share on February 3, 2022.
Here is what Summers Value Partners has to say about ModivCare Inc. in its Q4 2021 investor letter:
“The biggest detractor in the fourth quarter was Modivcare (MODV), which was pressured by tightness in the labor market and two ill-advised acquisitions. We began trimming our position in Modivcare in the fall and recently exited the position entirely. When we first underwrote our investment in Modivcare almost two years ago, the company had a dominant position in its core non-emergency medical transportation market and a completely un-levered balance sheet. The risk/reward changed dramatically after the company overpaid for several acquisitions in 2021, leaving the company with too much debt for our comfort level especially considering the headwinds now facing the business.”
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Our calculations show that ModivCare Inc. (NASDAQ: MODV) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. MODV was in 21 hedge fund portfolios at the end of the third quarter of 2021, compared to 22 funds in the previous quarter. ModivCare Inc. (NASDAQ: MODV) delivered a -36.70% return in the past 3 months.
In January 2021, we also shared another hedge fund’s views on MODV in another article. 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.
