Wasatch Global Investors, an asset management company, released its “Wasatch Micro-Cap Value Strategy” second-quarter 2024 investor letter. A copy of the same can be downloaded here. During the second quarter, the strategy fell but significantly outperformed the benchmark Russell Microcap Index which declined -5.27%. The firm did not observe any major changes in its long-term investment position during the quarter. However, it acknowledges that the majority of equities fell as investors’ concerns about the possibility of a recession, higher-for-longer inflation, and interest rates. A small group of stocks that are thought to be doing well because of the artificial intelligence (AI) boom kept going up at the same time. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Wasatch Micro-Cap Value Strategy highlighted stocks like Cross Country Healthcare, Inc. (NASDAQ:CCRN), in the second quarter 2024 investor letter. Cross Country Healthcare, Inc. (NASDAQ:CCRN) provides talent management and consultive services for healthcare clients that operates through Nurse and Allied Staffing, and Physician Staffing. The one-month return of Cross Country Healthcare, Inc. (NASDAQ:CCRN) was -4.57%, and its shares lost 40.72% of their value over the last 52 weeks. On September 9, 2024, Cross Country Healthcare, Inc. (NASDAQ:CCRN) stock closed at $13.77 per share with a market capitalization of $465.544 million.
Wasatch Micro-Cap Value Strategy stated the following regarding Cross Country Healthcare, Inc. (NASDAQ:CCRN) in its Q2 2024 investor letter:
“We also exited Cross Country Healthcare, Inc. (NASDAQ:CCRN), which offers traveling and per diem nurses, radiology technicians, rehabilitation therapists and staff for clinical research trials. The stock fell due to unimpressive earnings. Earlier this year, we took comfort from Cross Country’s strong cash flows, low debt level and inexpensive valuation. However, we recently concluded that the demand for traveling nurses has softened much more than anticipated. In addition, Cross Country must contend with some bad debts that may not be resolved quickly. Softening demand and bad debts are red flags with respect to business quality. As a result, we decided to move on and deploy our capital elsewhere.”
A nurse in uniform, with a patient, representing the commitment to nursing and allied staffing.
Cross Country Healthcare, Inc. (NASDAQ:CCRN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Cross Country Healthcare, Inc. (NASDAQ:CCRN) at the end of the second quarter which was 15 in the previous quarter. Cross Country Healthcare, Inc. (NASDAQ:CCRN) reported $340 million in consolidated revenues, down 37% year-over-year While we acknowledge the potential of Cross Country Healthcare, Inc. (NASDAQ:CCRN) 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.
Wasatch Micro-Cap Value Strategy established a position in Cross Country Healthcare, Inc. (NASDAQ:CCRN) during Q3 2023. In addition, please check out our hedge fund investor letters Q2 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.
