Greenhaven Road Capital, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The fund returned approximately -9% net for the fourth quarter, bringing the full-year net return to approximately 3%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Greenhaven Road Capital, in its Q4 2021 investor letter, mentioned Teladoc Health, Inc (NYSE: TDOC) and discussed its stance on the firm. Teladoc Health, Inc is a Harrison, New York-based multinational telemedicine and virtual healthcare company with an $11.2 billion market capitalization. TDOC delivered a -16.46% return since the beginning of the year, while its 12-month returns are down by -70.95%. The stock closed at $70.40 per share on January 31, 2022.
Here is what Greenhaven Road Capital has to say about Teladoc Health, Inc in its Q4 2021 investor letter:
“Teledoc Health (TDOC) – I agree with the common sentiment that we have seen the end of the tailwinds many companies enjoyed due to the massive customer behavior changes necessitated by staying home. Shares of “Covid beneficiaries” have sold off dramatically as a result. The share price of Teledoc Health (TDOC) is down >75% and instead of selling for 20X revenues, they are trading for less than 5X revenues.
What do we get at this reduced price? For starters, unlike many other “Covid beneficiaries,” Teledoc still expects to grow 25-30% per year for the next three years, regardless of progress to a more normalized environment. Is this plausible? For starters, management pre-announced revenues and reaffirmed their projections at the JPMorgan healthcare conference after their big selling season was complete, so there are indications that the company continues to believe. More importantly, the path to continued growth is primarily from selling additional products to existing customers. Over the past ten years,
Teledoc has evolved from being a Zoom solution for doctors to a much broader swath of comprehensive service offerings, including the delivery of mental healthcare, the monitoring of chronic conditions, lab testing, and specialist referrals. Teledoc is a telehealth provider that benefits from a large number of offerings as well as a broad geographic footprint in the U.S. and internationally. This scale enables it to provide a comprehensive solution for a health plan or a company making selections for large groups of patients. The benefits of scale are also realized on the development/product front, where there is a large base of 76M end customers to spread investments across. The net result of their product breadth and technology investments is that the company can provide “whole person care” on a purpose-built technology platform…” (Click here to see the full text)
Our calculations show that Teladoc Health, Inc (NYSE: TDOC) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. TDOC was in 40 hedge fund portfolios at the end of the third quarter of 2021, compared to 43 funds in the previous quarter. Teladoc Health, Inc (NYSE: TDOC) delivered a -49.38% return in the past 3 months.
In December 2021, we also shared another hedge fund’s views on TDOC 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.
