Is HireQuest (HQI) a Smart Long-Term Investment?

Rhizome Partners, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. For the first quarter of 2021, Rhizome Partners generated a net loss of 9.9% versus a 4.6% loss for the Standard & Poor’s 500 Index and a 5.3% loss for the National Association of Real Estate Investment Trusts (NAREIT) Index. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Rhizome Partners mentioned HireQuest, Inc. (NASDAQ:HQI) and explained its insights for the company. Founded in 2002, HireQuest, Inc. (NASDAQ:HQI) is a South Carolina-based staffing solutions provider with a $200.4 million market capitalization. HireQuest, Inc. (NASDAQ:HQI) delivered a -27.88% return since the beginning of the year, while its 12-month returns are down by -18.41%. The stock closed at $14.54 per share on June 01, 2022.

Here is what Rhizome Partners has to say about HireQuest, Inc. (NASDAQ:HQI) in its Q1 2022 investor letter:

“We increased our allocation to HireQuest to over 4% of our partners’ capital. Our channel checks keep coming back with happy franchisees. Feedback includes better support from the franchisor, excitement to expand branches, and operational support to empower franchisees to focus on staffing. We called so many franchisees that the corporate office asked us why we were bothering their franchisees. We take this reprimand as a badge of honor. We believe that HireQuest may become an asset-light compounder with an impressive CEO. But staffing is a cyclical business, and we are positioned to add to our position in case of a sell-off.”

Our calculations show that HireQuest, Inc. (NASDAQ:HQI) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. HireQuest, Inc. (NASDAQ:HQI) was in 3 hedge fund portfolios at the end of the first quarter of 2022, compared to 1 fund in the previous quarter. HireQuest, Inc. (NASDAQ:HQI) delivered a -14.57% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on HireQuest, Inc. (NASDAQ:HQI) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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