Will Maximus (MMS) Continue to Drive Attractive Organic Growth?

Wedgewood Partners, an investment management company, released its “Focused SMID Cap Strategy” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned -14.1% compared to a return of -17.0% for the Russell 2500 Index. Since inception, the fund returned 10.3% compared to 4.9% for its benchmark index. In addition, please check the fund’s top five holdings to know its best picks in 2022.

In the second quarter 2022 investor letter, Wedgewood Partners discussed stocks like Maximus, Inc. (NYSE:MMS). Headquartered in Tysons, Virginia, Maximus, Inc. (NYSE:MMS) is a business process services provider to the government sector. On September 28, 2022, Maximus, Inc. (NYSE:MMS) stock closed at $58.32 per share. One-month return of Maximus, Inc. (NYSE:MMS) was -4.85% and its shares lost 29.90% of their value over the last 52 weeks. Maximus, Inc. (NYSE:MMS) has a market capitalization of $3.531 billion.

Here is what Wedgewood Partners specifically said about Maximus, Inc. (NYSE:MMS) in its Q2 2022 investor letter:

Maximus, Inc. (NYSE:MMS) also detracted from portfolio performance as investors continued to fixate on the near-term effects of the Biden Administration’s prolongation of the 2020 COVID-19 public health emergency (PHE). The congressional legislation that funds the PHE incentivizes states to delay Medicaid redeterminations as long as the PHE is in effect. MAXIMUS has a meaningful amount of earnings power that is pent-up because of this delay in redeterminations and given the difficulty in assessing the timing of what we thought would become a political issue, we trimmed positions earlier this year, particularly after the stock held up relative to the market. The removal of the PHE now represents substantial upside. Furthermore, we expect the Company to continue to drive attractive organic growth as a result of governments worldwide enacting post-COVID-19 policy measures.”

Professions With the Highest Suicide Rates in America

Tyler Olson/Shutterstock.com

Maximus, Inc. (NYSE:MMS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Maximus, Inc. (NYSE:MMS) at the end of the second quarter which was 18 in the previous quarter.

We discussed Maximus, Inc. (NYSE:MMS) in another article and shared Wedgewood Partners’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

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