Reasons for the Decline of Medifast (MED) in Q4

Miller Value Partners, an investment management company, released its “Income Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy returned 11.07% net of fees versus a 7.04% return for the benchmark, ICE BofA US High Yield Index, and underperforming the S&P 500’s 11.69% gain. Year-to-date the fund was up 12.59% net of fees compared to 13.44% for the benchmark and 26.29% return for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Miller Value Partners Income Strategy featured stocks such as Medifast, Inc. (NYSE:MED) in the fourth quarter 2023 investor letter. Headquartered in Baltimore, Maryland, Medifast, Inc. (NYSE:MED) offers healthy living products and programs. On January 11, 2024, Medifast, Inc. (NYSE:MED) stock closed at $61.63 per share. One-month return of Medifast, Inc. (NYSE:MED) was -12.32%, and its shares lost 52.71% of their value over the last 52 weeks. Medifast, Inc. (NYSE:MED) has a market capitalization of $671.311 million.

Miller Value Partners Income Strategy stated the following regarding Medifast, Inc. (NYSE:MED) in its fourth quarter 2023 investor letter:

“Medifast, Inc. (NYSE:MED) fell on the heels of a dividend elimination in conjunction with a $20MM investment in LifeMD, a provider of virtual primary care services, to provide OPTAVIA clients with a weight management program that includes GLP-1 drugs, establishing the company’s entrance into the medically supported weight loss market.”

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Medifast, Inc. (NYSE:MED) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Medifast, Inc. (NYSE:MED) at the end of third quarter which was 18 in the previous quarter.

We discussed Medifast, Inc. (NYSE:MED) in another article and shared the list of very high yield dividend stocks with upside potential. 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.