Is Rimini Street (RMNI) a Smart Long-Term Buy?

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Small Cap Fund” first-quarter 2022 investor letter – a copy of which can be downloaded here. Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline, and client alignment. Amid a rocky market environment, the portfolio’s negative returns still outpaced the Russell 2000 Index by a healthy margin in Q1.  Try to take some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Diamond Hill Small Cap Fund mentioned Rimini Street, Inc. (NASDAQ:RMNI) and explained its insights for the company. Founded in 2005, Rimini Street, Inc. (NASDAQ:RMNI) is a Las Vegas, Nevada-based software company with a $529.2 million market capitalization. Rimini Street, Inc. (NASDAQ:RMNI) delivered a 1.84% return since the beginning of the year, while its 12-month returns are down by -22.05%. The stock closed at $6.08 per share on July 08, 2022. 

Here is what Diamond Hill Small Cap Fund has to say about Rimini Street, Inc. (NASDAQ:RMNI) in its Q1 2022 investor letter:

“IT services provider Rimini Street — a new holding in Q1 — reported solid fundamentals and is making progress on rectifying recent challenges with its US sales organization. The company remains profitable and is generating solid cash levels contributing to net cash on its balance sheet. What’s more, the elimination of preferred stock in 2021 demonstrates a management team that’s aligned with common shareholders.”

Photo by Danial Igdery on Unsplash

Our calculations show that Rimini Street, Inc. (NASDAQ:RMNI) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Rimini Street, Inc. (NASDAQ:RMNI) was in 15 hedge fund portfolios at the end of the first quarter of 2022, compared to 14 funds in the previous quarter. Rimini Street, Inc. (NASDAQ:RMNI) delivered a -0.49%% return in the past 3 months. 

In April 2021, we also shared another hedge fund’s views on Rimini Street, Inc. (NASDAQ:RMNI) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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