Ariel Investments, an investment management firm, published its “Ariel Focus Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. Ariel Focus Fund gained +4.95% in the fourth quarter trailing the Russell 1000 Value Index which increased +7.77% and the S&P 500 Index which gained +11.03%. For the full year 2021, Ariel Focus Fund posted a strong absolute return of +21.15% but trailed both the Russell 1000 Value Index and the S&P 500 which rose +25.16% and +28.71%, respectively Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Ariel Investments, in its Q4 2021 investor letter, mentioned Zimmer Biomet Holdings, Inc. (NYSE:ZBH) and discussed its stance on the firm. Founded in 1927, Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is a Warsaw, Indiana-based medical device company with a $25.6 billion market capitalization, and is currently spearheaded by its CEO, Bryan C. Hanson. Zimmer Biomet Holdings, Inc. (NYSE:ZBH) delivered a -1.79% return since the beginning of the year, while its 12-month returns are down by -20.09%. The stock closed at $121.04 per share on March 21, 2022.
Here is what Ariel Investments has to say about Zimmer Biomet Holdings, Inc. (NYSE:ZBH) in its Q4 2021 investor letter:
“A reopening of the global economy with a reduction in the severity of the pandemic has led us to invest in companies that would perform well with an end to Covid restrictions such as canceled sports and entertainment events or companies that would benefit from pent-up demand for consumer products. Healthcare holdings such as Zimmer Biomet Holdings Inc. (ZBH) saw demand for their “elective” healthcare services decline sharply as hospitals lost capacity for non-essential surgeries or orthotics. We believed those companies should see a rebound in their business as cases decline. Unfortunately, two new Covid variants turned this theme from a tailwind to a headwind in the second half of the year. First, Delta then Omicron sent Covid cases higher and both companies saw their businesses slow again. Zimmer’s stock lost -13.04% in the fourth quarter. As we write, we believe Omicron cases could be nearing a peak which would allow our thesis to better play out this year.”
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Our calculations show that Zimmer Biomet Holdings, Inc. (NYSE:ZBH) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Zimmer Biomet Holdings, Inc. (NYSE:ZBH) was in 43 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 47 funds in the previous quarter. Zimmer Biomet Holdings, Inc. (NYSE:ZBH) delivered a 1.88% return in the past 3 months.
In February 2022, we published an article that includes Zimmer Biomet Holdings, Inc. (NYSE:ZBH) in the 5 Best Healthcare Stocks To Buy In 2022. 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.
