Summers Value Partners, an investment management company, released its fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The Summers Value Fund LP returned a net1 return of 27.4% in 2024 outperforming 11.3% return for its primary benchmark, the Russell 2000 Index ETF (IWM). The fund also outperformed its secondary benchmark, the Russell 2000 Value Index ETF (IWN), which returned 7.7% for the year. The Fund achieved profitability on both the long and short positions in its portfolio throughout the year. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Summers Value Partners highlighted stocks like ModivCare Inc. (NASDAQ:MODV) in the fourth quarter 2024 investor letter. ModivCare Inc. (NASDAQ:MODV) is a technology-enabled healthcare services company. The one-month return of ModivCare Inc. (NASDAQ:MODV) was -64.18%, and its shares lost 89.32% of their value over the last 52 weeks. On January 30, 2024, ModivCare Inc. (NASDAQ:MODV) stock closed at $4.18 per share with a market capitalization of $59.706 million.
Summers Value Partners stated the following regarding ModivCare Inc. (NASDAQ:MODV) in its Q4 2024 investor letter:
“The Fund was profitable on both the long and short sides of the portfolio during the year. For the third year in a row, our shorting activities were profitable. As a reminder, we take a selective approach towards shorting and only short stocks for absolute performance, not to hedge. The biggest contributor on the short side was ModivCare Inc. (NASDAQ:MODV), which we successfully shorted twice during the year. The stock declined significantly due to deteriorating business prospects and an overburdened balance sheet, which resulted from a spree of ill-advised acquisitions in 2021.”
A telemedicine consultation taking place with a doctor and a patient over video call.
ModivCare Inc. (NASDAQ:MODV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held ModivCare Inc. (NASDAQ:MODV) at the end of the third quarter which was 15 in the previous quarter. ModivCare Inc.’s (NASDAQ:MODV) third quarter results were in line with expectations, with revenue increasing 2% year-over-year to $702 million. While we acknowledge the potential of ModivCare Inc. (NASDAQ:MODV) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed ModivCare Inc. (NASDAQ:MODV) and shared Aristotle Capital Small Cap Equity Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.