Should Now Consider Selling Your LENSAR (LNSR) Shares?

Merion Road Capital Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. Merion Road Capital’s long-only large-cap portfolio returned 20% for the year. While this is a strong result on an absolute basis, it lagged the S&P.  Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Merion Road Capital Management, in its Q4 2021 investor letter, mentioned LENSAR, Inc. (NASDAQ: LNSR) and discussed its stance on the firm. LENSAR, Inc. is an Orlando, Florida-based commercial-stage medical device company with a $64.4 million market capitalization. LNSR delivered a -1.84% return since the beginning of the year, while its 12-month returns are down by -32.57%. The stock closed at $5.88 per share on February 14, 2022.

Here is what Merion Road Capital Management has to say about LENSAR, Inc. in its Q4 2021 investor letter:

“Our biggest single‐name detractor for the period was Lensar (“LNSR”). Not much is new from a fundamental perspective. Revenue has rebounded from the covid lows and the company is nearing the launch of ALLY, its joint phacoemulsification and laser system for cataract surgery. Frankly the stock just has little investor appetite given its small size and negative cashflow profile. I anticipate this changing should ALLY prove to be a success. Even if ALLY failsto gain steam, eliminating the incremental investment expenses would dramatically change the earnings profile of the core business.”

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Our calculations show that LENSAR, Inc. (NASDAQ: LNSR) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. LNSRwas in 7 hedge fund portfolios at the end of the third quarter of 2021, compared to 8 funds in the previous quarter. LENSAR, Inc. (NASDAQ: LNSR) delivered a -19.06% return in the past 3 months.

In February 2021, we also shared another hedge fund’s views on LNSR in another article. You can find other 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.