Coliseum Capital Takes Some Profit From Its LHC Group, Inc. (LHCG) Holding; More On The Way?

In a recent 13D filing with the Securities and Exchange Commission, it was disclosed that Christopher Shackelton and Adam Gray‘s Coliseum Capital has trimmed its stake in LHC Group, Inc. (NASDAQ:LHCG) to about 2.17 million shares from 2.27 million shares that it held previously. The current holding represents 12.05% of the company’s outstanding common stock.

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After working for Watershed Asset Management, Christopher Shackelton, a graduate from Yale, co-founded Coliseum in 2005. The investment firm makes long-term investments in both public and private companies. It has a concentrated portfolio with eight public equity holdings, the market value of which stood at $331.88 million at the end of March. The healthcare sector represented 63% of those holdings. Currently, Coliseum has about $757 million in assets under management.

The $652.42 million provider of post-acute health care services to hospitals, physicians and families has seen its stock soar by nearly 20% year-to-date. This is even better than the strong gains of the medical care industry, which amount to 13.5% during the same period. The trailing twelve month earnings multiple of LHC Group, Inc. (NASDAQ:LHCG) stands at 25.8, and is lower than the industry’s average of 27.09. However, its beta of 1.17 is significantly higher than the industry’s 0.45.