Should You Already Consider Disposing Your ATI Physical Therapy (ATIP) Stake?

Bernzott Capital Advisors, an investment management firm, published its “US Small Cap Value Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The portfolio fell -4.6% (gross), modestly below the Russell 2000 Value’s decline of -2.4% and the Russell 2500 Value’s decline of -1.5% for the first quarter of 2022. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Bernzott Capital US Small Cap Value Fund mentioned ATI Physical Therapy, Inc. (NYSE:ATIP) and explained its insights for the company. Founded in 1996, ATI Physical Therapy, Inc. (NYSE:ATIP)  is a Bolingbrook, Illinois-based physical therapy services provider with a $293.4 million market capitalization. ATI Physical Therapy, Inc. (NYSE:ATIP)  delivered a -59.44% return since the beginning of the year, while its 12-month returns are down by -86.24%. The stock closed at $1.45 per share on May 09, 2022.

Here is what Bernzott Capital US Small Cap Value Fund has to say about ATI Physical Therapy, Inc. (NYSE:ATIP) in its Q1 2022 investor letter:

“ATI Physical Therapy (NYSE:ATIP): Elevated employee turnover persisted, contributing to poor operating results. The disruption was partly due to missteps by management during the pandemic. The stock entered the quarter as the smallest weighting in the portfolio, and the position was significantly reduced.”

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Our calculations show that ATI Physical Therapy, Inc. (NYSE:ATIP) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. ATI Physical Therapy, Inc. (NYSE:ATIP) was in 18 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 25 funds in the previous quarter. ATI Physical Therapy, Inc. (NYSE:ATIP) delivered a -53.23% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on ATI Physical Therapy, Inc. (NYSE:ATIP) 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.