Is it a Good Choice to Keep Your HealthEquity (HQY) Shares?

ClearBridge Investments, an investment management firm, published its “Small Cap Strategy” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Small Cap Strategy outperformed the Russell 2000 Index, the Strategy’s benchmark, during the fourth quarter. On an absolute basis, the Strategy posted gains in nine of 11 sectors in which it was invested for the quarter. The primary contributors to the Strategy’s performance were the financials, materials, and IT sectors. The communication services sector was the main detractor from performance. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

ClearBridge Investments Small Cap Strategy, in its Q4 2021 investor letter, mentioned HealthEquity, Inc. (NASDAQ:HQY) and discussed its stance on the firm. Founded in 2002, HealthEquity, Inc. (NASDAQ:HQY) is a Draper, Utah-based healthcare company with a $5.6 billion market capitalization, and is currently spearheaded by its CEO, Jon Kessler. HealthEquity, Inc. (NASDAQ:HQY) delivered a 51.42% return since the beginning of the year, while its 12-month returns are down by -0.25%. The stock closed at $66.99 per share on April 04, 2022.

Here is what ClearBridge Investments Small Cap Strategy has to say about HealthEquity, Inc. (NASDAQ:HQY) in its Q4 2021 investor letter:

“Health care savings provider HealthEquity traded lower after delivering lower than expected results, though these were confined to the businesses that are directly impacted by COVID-19-related restrictions (work-related commuting and access to non-emergency health care). The long-term value creation of its Health Savings Account business remains in place and is not fully reflected in the stock price.”

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Our calculations show that HealthEquity, Inc. (NASDAQ:HQY) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. HealthEquity, Inc. (NASDAQ:HQY) was in 26 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 26 funds in the previous quarter. HealthEquity, Inc. (NASDAQ:HQY) delivered a 42.14% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on HealthEquity, Inc. (NASDAQ:HQY) 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.