Is it Still Worthy to Keep Your Healthcare Services Group (HCSG) Stake?

Harding Loevner, an investment management firm, published its “Global Small Companies Equity Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly net return of 2.86% was recorded by the fund for the fourth quarter of 2021, beating its Benchmark, the MSCI All Country World Small Cap Index, which returned 2.22% for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Harding Loevner Global Small Companies Equity Fund, in its Q4 2021 investor letter, mentioned Healthcare Services Group, Inc. (NASDAQ: HCSG) and discussed its stance on the firm. Healthcare Services Group, Inc. is a Bensalem Township, Pennsylvania-based housekeeping, laundry, linen, facility maintenance, and food services provider with a $1.1 billion market capitalization. HCSG delivered a -12.37% return since the beginning of the year, while its 12-month returns are down by -45.16%. The stock closed at $15.59 per share on March 01, 2022.

Here is what Harding Loevner Global Small Companies Equity Fund has to say about Healthcare Services Group, Inc. in its Q4 2021 investor letter:

“For the year, the portfolio’s US stocks failed to keep up with the robust returns of the region in the face of a pronounced style headwind, as US small cap growth stocks trailed their value peers by over 1,400 basis points. Disappointing business results from several US companies also worked against us. Healthcare Services, a provider of outsourced housekeeping and dietary services for post-acute-care and long-term assisted living facilities, saw its rising labor and food costs weigh on both revenues and profits as some of its customers balked at higher fees.”

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Our calculations show that Healthcare Services Group, Inc. (NASDAQ: HCSG) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. HCSG was in 22 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 21 funds in the previous quarter. Healthcare Services Group, Inc. (NASDAQ: HCSG) delivered a -6.87% return in the past 3 months.

In February 2022, we published an article that includes HCSG in the 15 Blue Chip Dividend Stocks With Over 4% Yield. You can find more than 100 investor 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.