Summers Value Partners, an investment management company, released its fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The Summers Value Fund LP returned a net1 return of 27.4% in 2024 outperforming 11.3% return for its primary benchmark, the Russell 2000 Index ETF (IWM). The fund also outperformed its secondary benchmark, the Russell 2000 Value Index ETF (IWN), which returned 7.7% for the year. The Fund achieved profitability on both the long and short positions in its portfolio throughout the year. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Summers Value Partners highlighted stocks like Premier, Inc. (NASDAQ:PINC) in the fourth quarter 2024 investor letter. Premier, Inc. (NASDAQ:PINC) is a healthcare improvement company that operates through Supply Chain Services and Performance Services segments. The one-month return of Premier, Inc. (NASDAQ:PINC) was 6.73%, and its shares gained 8.18% of their value over the last 52 weeks. On January 30, 2024, Premier, Inc. (NASDAQ:PINC) stock closed at $23.00 per share with a market capitalization of $2.21 billion.
Summers Value Partners stated the following regarding Premier, Inc. (NASDAQ:PINC) in its Q4 2024 investor letter:
“Premier, Inc. (NASDAQ:PINC): Premier is one of the largest healthcare group purchasing organizations (GPOs) in the US. We purchased Premier in the third quarter of 2023, following the company’s announcement of the sale of its non-healthcare GPO business. The sale completely de-leveraged the balance sheet and positioned the company to start returning capital to shareholders through dividends and share repurchases. The company also appointed a new CEO, whom we expected to drive improved performance after years of underwhelming results under the previous leadership. Despite these positive changes, the company continued to underperform as its core healthcare GPO business faced pricing pressure, and management failed to meet its goal of divesting additional underperforming units. We sold our position at a loss, as we identified better investment opportunities elsewhere.”
A healthcare worker at a desk, monitoring the performance of a Group Purchasing Program.
Premier, Inc. (NASDAQ:PINC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Premier, Inc. (NASDAQ:PINC) at the end of the third quarter which was 21 in the previous quarter. In the fiscal first quarter of 2025, Premier, Inc. (NASDAQ:PINC) generated $248.1 million in revenues decreased 8% year-over-year. While we acknowledge the potential of Premier, Inc. (NASDAQ:PINC) 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 addition, please check out our hedge fund investor letters Q3 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.