Is it Still Worthy to Invest in Medifast (MED)?

Miller Howard Investments, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly return of 3.5% (yield) was recorded by the fund for the third quarter of 2021, compared to the 1.5% for the S&P 500 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.

Miller Howard Investments, in its Q3 2021 investor letter, mentioned Medifast, Inc. (NYSE: MED) and discussed its stance on the firm. Medifast, Inc. is a Baltimore, Maryland-based multi-level marketing company with a $2.4 billion market capitalization. MED delivered a 5.83% return since the beginning of the year, while its 12-month returns are up by 7.71%. The stock closed at $207.79 per share on December 29, 2021.

Here is what Miller Howard Investments has to say about Medifast, Inc.  in its Q3 2021 investor letter:

“AFTER A METEORIC RISE OVER THE PAST YEAR, small-cap stocks reversed course with the Russell 2000 Index down -4.4% for the quarter. Much of the downdraft was focused on stocks that had done well in the pandemic environment but lost favor with investors who see a recovery on the horizon. Our largest detractors have all benefitted from pandemic-driven demand. Medifast (MED), a provider of weight loss programs and our second biggest detractor, traded off this quarter over worries that their success has been bolstered by people working from home.”

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Based on our calculations, Medifast, Inc. (NYSE: MED) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. MED was in 20 hedge fund portfolios at the end of the third quarter of 2021, compared to 23 funds in the previous quarter. Medifast, Inc. (NYSE: MED) delivered a 4.64% return in the past 3 months.

In April 2021, we published an article that includes GIS in the 20 Most Unhealthiest Countries In the World. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

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