Here’s Why You Must Continue on Trusting ATI Physical Therapy (ATIP)

Bernzott Capital Advisors, an investment management firm, published its “US Small Cap Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The portfolio rose 4.2% (gross) slightly underperforming the Russell 2000 Value’s advance of 4.3%, and somewhat less than the Russell 2500 Value’s gain of 6.3%. Industrials, the sector with the largest allocation at 35.2% of the portfolio, was the largest positive contributor to returns led by capital goods holdings. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Bernzott Capital Advisors US Small Cap Value, in its Q4 2021 investor letter, mentioned ATI Physical Therapy, Inc. (NYSE: ATIP) and discussed its stance on the firm. ATI Physical Therapy, Inc. is a Bolingbrook, Illinois-based rehabilitation services provider with a $593.7 million market capitalization. ATIP delivered a -11.21% return since the beginning of the year, while its 12-month returns are down by -74.64%. The stock closed at $3.01 per share on February 4, 2022.

Here is what Bernzott Capital Advisors US Small Cap Value has to say about ATI Physical Therapy, Inc. in its Q4 2021 investor letter:

“ATI Physical Therapy (ATIP): Disruptions in its professional workforce resulted in reduced patient visits per day and disappointing profitability. As the year progressed, the company reported progress in hiring and retention, which is a requisite for improved results. Longer-term, the company should benefit from market tailwinds including an aging population, more proactive utilization of physical therapy as a means of preventative care, and avoidance of mitigatable health care costs.”

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Our calculations show that ATI Physical Therapy, Inc. (NYSE: ATIP) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. ATIP was in 25 hedge fund portfolios at the end of the third quarter of 2021, compared to 30 funds in the previous quarter. ATI Physical Therapy, Inc. (NYSE: ATIP) delivered a -4.14% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on ATIP in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.