Summers Value Partners, an investment management firm, published its “Summers Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The Summers Value Fund LP (“the Fund”) returned 43.4% net for the full year 2021, outpacing the Russell 2000 Index ETF return of 13.7% and the Russell Micro-Cap Index ETF return of 17.8%. In the fourth quarter, the Fund returned 8.0% net1 relative to the Russell 2000 Index ETF return of 1.9% and the Russell Micro-Cap Index ETF return of -3.2%. The Fund has generated a cumulative 77.7% net1 return since inception compared to the Russell 2000 Index ETF return of 36.2% and the Russell Micro-Cap Index ETF return of 32.9% over the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Summers Value Partners, in its Q4 2021 investor letter, mentioned PLx Pharma Inc. (NASDAQ: PLXP) and discussed its stance on the firm. PLx Pharma Inc. is a Sparta Township, New Jersey-based pharmaceutical company with a $166.5 billion market capitalization. PLXP delivered a -24.47% return since the beginning of the year, while its 12-month returns are down by -1.63%. The stock closed at $6.05 per share on February 3, 2022.
Here is what Summers Value Partners has to say about PLx Pharma Inc. in its Q4 2021 investor letter:
“We were profitable on the short side of the portfolio during the fourth quarter driven by our negative view on PLX Pharmaceuticals (PLXP). We shorted PLXP on the thesis that the launch of Vazalore would disappoint against bullish investor expectations. Our due diligence concluded that the market for a highpriced aspirin product is limited as most chronic aspirin users are on fixed incomes. We were also underwhelmed by the clinical profile of the product versus enteric coated aspirin. We covered our position in PLXP in January as the stock approached our $5 price target. The fund’s remaining short position shares a “short the launch” thesis. In this case, the product has an underwhelming clinical profile and currently lacks insurance coverage. The company is spending tens of millions of dollars to launch the product into an already crowded market. The company has financed its operations with debt, which we think will introduce going concern risk at some point in the future.”
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Our calculations show that PLx Pharma Inc. (NASDAQ: PLXP) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. PLXP was in 6 hedge fund portfolios at the end of the third quarter of 2021, compared to 8 funds in the previous quarter. PLx Pharma Inc. (NASDAQ: PLXP) delivered a -55.94% return in the past 3 months.
In October 2021, we published an article that includes PLXP in the 10 Healthcare Stocks to Buy According to Peter S. Park’s Park West Asset Management. 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.
