Longleaf Partners, managed by Southeastern Asset Management, released its “Small-Cap Fund” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. Longleaf Partners Small-Cap Fund had a successful year, outperforming the Russell 2000 and Russell 2000 Value benchmark indices and achieving its absolute return goal of inflation plus 10%. The fund delivered 10.85% in the fourth quarter compared to a 14.03% return for the Russell 2000 Index and 15.26% for the Russell 2000 Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Longleaf Partners Small-Cap Fund featured stocks like Oscar Health, Inc. (NYSE:OSCR) in the fourth quarter 2023 investor letter. Headquartered in New York, New York, Oscar Health, Inc. (NYSE:OSCR) is a health insurance company. On February 29, 2024, Oscar Health, Inc. (NYSE:OSCR) stock closed at $16.26 per share. One-month return of Oscar Health, Inc. (NYSE:OSCR) was 19.21%, and its shares gained 227.82% of their value over the last 52 weeks. Oscar Health, Inc. (NYSE:OSCR) has a market capitalization of $3.735 billion.
Longleaf Partners Small-Cap Fund stated the following regarding Oscar Health, Inc. (NYSE:OSCR) in its fourth quarter 2023 investor letter:
“Oscar Health, Inc. (NYSE:OSCR) – Health insurance and software platform Oscar Health was the top contributor in the fourth quarter and for the year, after the stock price appreciated over 270% in 2023. Oscar was a top detractor in 2022 and highlights the importance of pragmatically revisiting the case for our decliners and not panic selling or adding too early on price declines. It is also a good reminder that game-changing value creation can come in unexpected ways, as it did with Mark Bertolini joining as CEO at Oscar this year. We couldn’t have modeled this as a driver, but we did recognize the stock price had become unduly punished alongside most tech-related businesses in 2022 and had confidence the business would rebound strongly. We remained engaged with management and the board to encourage proactive steps to close the extreme value gap. Oscar did benefit from a general rally in tech businesses coming out of 2022 weakness, but the positive price movement was primarily a direct reflection on the management upgrade and operational execution. Mark Bertolini brings significant operational expertise, as well as a strong endorsement value to the business, given his long-term track record as CEO of Aetna, which he sold to CVS for a great outcome for Aetna shareholders. Bertolini’s compensation package aligns his interests with shareholders, and he only really starts getting paid when the stock trades at $11 (vs the still discounted ~$9 level where the stock ended the year). In his first year, he has in quick order improved cost control and operational efficiency that drove EBITDA strength. Oscar reported another great quarter in November, beating expectations across most metrics and increasing 2024 guidance. The original venture investor holders beyond Thrive remain an overhang on the share price, and Oscar still offers significant upside from here.”
A close up of a patient and a healthcare professional engaging in conversation, showing the company’s commitment to patient care.
Oscar Health, Inc. (NYSE:OSCR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Oscar Health, Inc. (NYSE:OSCR) was held by 31 hedge fund portfolios, up from 24 in the previous quarter, according to our database.
We discussed Oscar Health, Inc. (NYSE:OSCR) in another article and shared the list of best booming stocks to buy. In addition, please check out our hedge fund investor letters Q4 2023 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.
