Is it Safe to Keep Your Owens and Minor (OMI) Position?

FPA Queens Road, an investment management firm, published its “FPA Queens Road Small Cap Value Fund” third-quarter 2021 investor letter – a copy of which can be downloaded here. The portfolio outpaced the Russell 2000 Value TR USD Index in the quarter, delivering a -2.53% return against the index’s -2.98% return for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

FPA Queens Road Small Cap Value Fund, in its Q3 2021 investor letter, mentioned Owens & Minor, Inc. (NYSE: OMI) and discussed its stance on the firm. Owens & Minor, Inc. is a Virginia-based healthcare company with a $3.2 billion market capitalization. OMI delivered a 57.56% return since the beginning of the year, while its 12-month returns are up by 65.45%. The stock closed at $42.62 per share on November 26, 2021.

Here is what FPA Queens Road Small Cap Value Fund  has to say about Owens & Minor, Inc.  in its Q3 2021 investor letter:

“Owens & Minor also fell during the quarter after a sharp rally in the share price during the first half of 2021. As a manufacturer and distributor of personal protection equipment (PPE), the company’s financial results have recently benefited from demand related to the COVID-19 pandemic. During 2020, the company brought in a new leadership team charged with reducing leverage and creating a more proactive, customer-focused culture. While the company’s interim financial results and current year guidance are favorable, we are watching closely to determine how much of the performance stems from new management versus the short-term boost from the pandemic.”

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Based on our calculations, Owens & Minor, Inc. (NYSE: OMI) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. OMI was in 15 hedge fund portfolios at the end of the third quarter of 2021, compared to 20 funds in the previous quarter. Owens & Minor, Inc. (NYSE: OMI) delivered a 14.29% return in the past 3 months.

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