Globus Medical (GMED) Declined on Investors’ Concerns Over Merger

Madison Investments, an investment advisor, released its “Madison Small Cap Fund” first-quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund (Class Y) returned 5.69% compared to a 2.74% rise for the Russell 2000 and a 3.39% increase for the Russell 2500 Index. Holdings in the Consumer Discretionary sector and low exposure to Financials, particularly regional banks drove the fund’s performance in the quarter.  In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Madison Small Cap Fund highlighted stocks like Globus Medical, Inc. (NYSE:GMED) in the first quarter 2023 investor letter. Headquartered in Audubon, Pennsylvania, Globus Medical, Inc. (NYSE:GMED) is a medical device company. On June 28, 2023, Globus Medical, Inc. (NYSE:GMED) stock closed at $58.49 per share. One-month return of Globus Medical, Inc. (NYSE:GMED) was 6.33%, and its shares gained 4.19% of their value over the last 52 weeks. Globus Medical, Inc. (NYSE:GMED) has a market capitalization of $5.986 billion.

Madison Small Cap Fund made the following comment about Globus Medical, Inc. (NYSE:GMED) in its first quarter 2023 investor letter:

“Healthcare, Industrials, and Materials were relative underperformers in the quarter. Healthcare, in particular, had a tough first quarter due to the underperformance of one of our core positions, Globus Medical, Inc. (NYSE:GMED). The company is merging with another spinal implant company, Nuvasive. Investors are concerned about the integration risk of the merger as previous combinations in the space have resulted in share loss. We await more details from the company on the integration plan.”

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Globus Medical, Inc. (NYSE:GMED) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Globus Medical, Inc. (NYSE:GMED) at the end of first quarter 2023 which was 23 in the previous quarter.

We discussed Globus Medical, Inc. (NYSE:GMED) in another article and shared the list of stocks recently downgraded by analysts. In addition, please check out our hedge fund investor letters Q1 2023 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.