Meridian Funds, managed by ArrowMark Partners, released its “Meridian Contrarian Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -3.28% net compared to -2.82% return for the Russell 2500 Index. At the same time, the fund outperformed its secondary benchmark, the Russell 2500 Value Index, which returned -4.50%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Meridian Funds highlighted stocks like Acadia Healthcare Company, Inc. (NASDAQ:ACHC) in the Q3 2022 investor letter. Headquartered in Franklin, Tennessee, Acadia Healthcare Company, Inc. (NASDAQ:ACHC) is a behavioral healthcare provider. On December 8, 2022, Acadia Healthcare Company, Inc. (NASDAQ:ACHC) stock closed at $83.32 per share. One-month return of Acadia Healthcare Company, Inc. (NASDAQ:ACHC) was 3.27% and its shares gained 41.94% of their value over the last 52 weeks. Acadia Healthcare Company, Inc. (NASDAQ:ACHC) has a market capitalization of $7.58 billion.
Meridian Funds made the following comment about Acadia Healthcare Company, Inc. (NASDAQ:ACHC) in its Q3 2022 investor letter:
“Acadia Healthcare Company, Inc. (NASDAQ:ACHC) is a provider of behavioral healthcare services in the U.S. Through its network of healthcare facilities, it offers care expertise in acute rehabilitation, long-term addiction therapy, child behavior, and other behavioral health issues. While Acadia’s U.S. business historically has grown mid-single digits and is profitable, its UK operations have struggled. In 2018-19, labor inefficiencies and frequent national health system regulation changes in the UK led to negative earnings growth and prompted the board of directors to replace the company’s CEO. In early 2020, Acadia’s new management announced it would begin the process of selling its unprofitable UK segment—a catalyst we felt could lead to an earnings rebound. While a COVID-related market disruption delayed the sale and depressed the stock, it provided us with an opportunity to build a position in Acadia. After strong performance in 2021, Acadia underperformed in early 2022 on concerns that rising labor costs may potentially hurt profitability and growth. We view Acadia’s management of la labor as a differentiator—we believe lessons learned during the UK business years aid its view on labor management. We consequently increased our position in the stock in the first half of 2022 and were rewarded by this approach, as Acadia’s stock gained following strong second-quarter earnings results. We continue to hold our position in Acadia, as its business typically is not affected by general macro developments.”
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Acadia Healthcare Company, Inc. (NASDAQ:ACHC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Acadia Healthcare Company, Inc. (NASDAQ:ACHC) at the end of the third quarter, which was 26 in the previous quarter.
We discussed Acadia Healthcare Company, Inc. (NASDAQ:ACHC) in another article and shared Aristotle Capital’s views on the company. In addition, please check out our hedge fund investor letters Q3 2022 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.
