Wasatch Micro Cap: “Pennant (PNTG) Will Show Improvement in the Coming Quarters”

Wasatch Global Investors, an investment management firm, published its “Wasatch Micro Cap Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 10.95% was recorded by the fund for the Q1 of 2021, trailing the benchmark, Russell Microcap Index, which rose 23.89% for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Wasatch Micro Cap, in its Q1 2021 investor letter, mentioned The Pennant Group, Inc. (NASDAQ: PNTG), and shared their insights on the company. The Pennant Group, Inc. is an Idaho, United States-based home health care services company that currently has a $1.09 billion market capitalization. Since the beginning of the year, PNTG delivered a -35.11% return, while its 12-month gains are up by 115.78%. As of May 07, 2021, the stock closed at $38.38 per share.

Here is what Wasatch Micro Cap has to say about The Pennant Group, Inc. in its Q1 2021 investor letter:

“Another weak stock in the Fund was Pennant Group, Inc. (PNTG). The company operates a network of approximately 80 home-health and hospice agencies, and 54 senior-living communities, located mostly in Western states. Pennant’s stock price headed lower in February after the company reported lackluster revenue growth in its senior-living services segment. Management cited challenges resulting from the second wave of Covid-19, noting that a full return to pre-pandemic occupancy would take time and probably create some additional lumpiness in Pennant’s quarterly results. We expected some disruption from the pandemic and believe Pennant will show improvement in the coming quarters. (Current and future holdings are subject to risk.)”

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Our calculations show that The Pennant Group, Inc. (NASDAQ: PNTG) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, The Pennant Group, Inc. was in 10 hedge fund portfolios compared to 15 funds in the third quarter. PNTG delivered a -31.10% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

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