Here’s Why Miller Income Strategy Sold Medifast (MED)

Miller Value Partners, an investment management company, released its “Income Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter, the strategy returned 11.69% net of fees versus a 1.52% return for the benchmark, ICE BofA US High Yield Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Miller Value Income Strategy featured stocks like Medifast, Inc. (NYSE:MED) in the Q1 2024 investor letter. Headquartered in Baltimore, Maryland, Medifast, Inc. (NYSE:MED) offers healthy living products and programs. On April 15, 2024, Medifast, Inc. (NYSE:MED) stock closed at $31.35 per share. One-month return of Medifast, Inc. (NYSE:MED) was -10.27%, and its shares lost 67.65% of their value over the last 52 weeks. Medifast, Inc. (NYSE:MED) has a market capitalization of $341.577 million.

Miller Value Income Strategy stated the following regarding Medifast, Inc. (NYSE:MED) in its first quarter 2024 investor letter:

“When the Strategy is performing well and valuations in the portfolio remain as low as they are, we are hesitant to make many changes. However, remaining vigilant against investment mistakes and constantly searching for ways to improve the portfolio are both critical components of the process. This past quarter, we eliminated two mistakes and two winners that were approaching fair value. We liquidated what was left of Medifast, Inc. (NYSE:MED) after continued struggles in the face of weight loss drugs.”

Binh Thanh Bui/Shutterstock.com

Medifast, Inc. (NYSE:MED) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Medifast, Inc. (NYSE:MED) was held by 16 hedge fund portfolios, compared to 20 in the previous quarter, according to our database.

We previously discussed Medifast, Inc. (NYSE:MED) in another article, where we shared Miller Value Income Strategy’s perspective on the company. In addition, please check out our hedge fund investor letters Q1 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.