Wasatch Global Investors, an asset management company, released its “Wasatch Long/Short Alpha Fund” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. US small caps experienced modest gains in Q4, driven by presidential election and anticipated economic growth and less regulation. However, markets fell in December as the Federal Reserve hinted that it could have to maintain interest rates higher in 2025 than investors had first anticipated. In this case, the fund fell -8.28% and trailed the benchmark Russell 2500™ Index, which returned 0.62%. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Wasatch Long/Short Alpha Fund emphasized stocks such as Acadia Healthcare Company, Inc. (NASDAQ:ACHC). Acadia Healthcare Company, Inc. (NASDAQ:ACHC) is a behavioral healthcare services company. The one-month return of Acadia Healthcare Company, Inc. (NASDAQ:ACHC) was -28.74%, and its shares lost 62.21% of their value over the last 52 weeks. On March 18, 2025, Acadia Healthcare Company, Inc. (NASDAQ:ACHC) stock closed at $29.14 per share with a market capitalization of $2.707 billion.
Wasatch Long/Short Alpha Fund stated the following regarding Acadia Healthcare Company, Inc. (NASDAQ:ACHC) in its Q4 2024 investor letter:
“Turning to short positions, contributors were stocks that declined in price. The largest contributor among those shorts was Acadia Healthcare Company, Inc. (NASDAQ:ACHC). The company provides behavioral health services through its network of facilities around the country. We shorted the stock because we felt its business model was deteriorating. The stock was down after the company reported quarterly operating results that were not well received by the market. Additionally, the stock fell after news that the Veteran Affairs Department is investigating whether Acadia has defrauded government health insurance programs. That news was the latest in a string of investigations involving the company.”
A healthcare professional discussing a treatment plan with a patient in an outpatient clinic.
Acadia Healthcare Company, Inc. (NASDAQ:ACHC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Acadia Healthcare Company, Inc. (NASDAQ:ACHC) at the end of the fourth quarter compared to 43 in the third quarter. Acadia Healthcare Company, Inc.’s (NASDAQ:ACHC) fourth quarter revenue increased 4.2% year-over-year to $774 million. While we acknowledge the potential of Acadia Healthcare Company, Inc. (NASDAQ:ACHC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Acadia Healthcare Company, Inc. (NASDAQ:ACHC) and shared the list of undervalued stocks with the highest upside potential. In addition, please check out our hedge fund investor letters Q4 2024 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.
