Heartland Advisors, an investment management company, released its “Heartland Mid Cap Value Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy returned a 12.38% (Net of Advisory Fees) compared to a 10.45% gain for the Russell Midcap Value Index. The stock selection in Real Estate, Healthcare, and Energy sectors led to the strategy’s outperformance in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Heartland Mid Cap Value Strategy highlighted stocks like Encompass Health Corporation (NYSE:EHC) in its Q4 2022 investor letter. Headquartered in Birmingham, Alabama, Encompass Health Corporation (NYSE:EHC) is a healthcare services provider. On March 9, 2023, Encompass Health Corporation (NYSE:EHC) stock closed at $54.05 per share. One-month return of Encompass Health Corporation (NYSE:EHC) was -11.09%, and its shares gained 0.01% of their value over the last 52 weeks. Encompass Health Corporation (NYSE:EHC) has a market capitalization of $5.39 billion.
Heartland Mid Cap Value Strategy made the following comment about Encompass Health Corporation (NYSE:EHC) in its Q4 2022 investor letter:
“One of our best performing stocks in the fourth quarter was Encompass Health Corporation (NYSE:EHC), a leader in inpatient rehabilitation for strokes, neurological issues, and post-op surgical services. Earlier in the year, EHC spun off Enhabit, its home health and hospice business. The move allowed investors to begin properly valuing EHC’s rehabilitation business, which enjoys sizeable scale and operational advantages within the industry.
Other tailwinds include progress in getting past labor supply and cost issues that created a profit squeeze in the post-COVID-19 environment. Revenues are also recovering, as COVID-19-related dynamics, such as fewer elective surgeries and lower general health system utilization, are beginning to clear. Yet the stock, which has historically traded at a premium to the broader midcap universe, remains at a discount, though the gap is closing.”
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Encompass Health Corporation (NYSE:EHC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Encompass Health Corporation (NYSE:EHC) at the end of the fourth quarter which was 32 in the previous quarter.
We discussed Encompass Health Corporation (NYSE:EHC) in another article and shared the list of biggest nursing home companies in the US. 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.
