Silver Ring Value Partners, an investment management company, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The strategy returned -9.2% (net) in the last 12 months compared to a 35.2% return for the Russell 3000 Index and a 33.1% return for the MSCI World Index during the same period. The portfolio is more undervalued and better balanced than a year ago, and the firm believes it will benefit them working toward the long-term objective of safely compounding capital. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Silver Ring Value Partners highlighted stocks like Pediatrix Medical Group, Inc. (NYSE:MD), in the third quarter 2024 investor letter. Pediatrix Medical Group, Inc. (NYSE:MD) is a US-based neonatal, maternal-fetal, pediatric cardiology, and other pediatric subspecialty care services provider. The one-month return of Pediatrix Medical Group, Inc. (NYSE:MD) was 12.17%, and its shares gained 65.94% of their value over the last 52 weeks. On November 18, 2024, Pediatrix Medical Group, Inc. (NYSE:MD) stock closed at $14.47 per share with a market capitalization of $1.243 billion.
Silver Ring Value Partners stated the following regarding Pediatrix Medical Group, Inc. (NYSE:MD) in its Q3 2024 investor letter:
“We owned Pediatrix Medical Group, Inc. (NYSE:MD) in the past. Since we exited, the company has been going through a simplification and turnaround process that I have been following. As you may recall, decades of experience have taught me that the best way to invest in turnarounds is to wait for indications that the business is turning, even if that means foregoing the initial move in the stock price. The reason is simple: most turnaround attempts don’t succeed, and those that begin to turn usually continue to do so.
That’s what we have here with Pediatrix. The company has simplified its business to the core business of staffing NICU physicians and related specialists for hospitals. It has a strong competitive advantage in this niche with a very sticky business with high switching costs…”(Click here to read the full text)
A neonatal nurse cradling a newborn in her arms, contentment on her face.
Pediatrix Medical Group, Inc. (NYSE:MD) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Pediatrix Medical Group, Inc. (NYSE:MD) at the end of the third quarter which was 26 in the previous quarter. While we acknowledge the potential of Pediatrix Medical Group, Inc. (NYSE:MD) 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 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.