Brown Capital Management, an investment management company, released its “The Brown Capital Management Mid Company Strategy” Q3 2022 investor letter. A copy of the same can be downloaded here. The Mid Company Composite returned -4.52% in the quarter compared to a -0.65% return for the Russell Midcap Growth Index. The firm invests in mission-critical companies and owns companies with a competitive advantage and skilled managers. In addition, check the fund’s top five holdings to know its best picks in 2022.
Brown Capital Management highlighted stocks like Omnicell, Inc. (NASDAQ:OMCL) in its Q3 2022 investor letter. Headquartered in Mountain View, California, Omnicell, Inc. (NASDAQ:OMCL) is a technology company that serves the healthcare industry. On December 20, 2022, Omnicell, Inc. (NASDAQ:OMCL) stock closed at $48.14 per share. One-month return of Omnicell, Inc. (NASDAQ:OMCL) was -5.70%, and its shares lost 72.93% of their value over the last 52 weeks. Omnicell, Inc. (NASDAQ:OMCL) has a market capitalization of $2.149 billion.
Brown Capital Management made the following comment about Omnicell, Inc. (NASDAQ:OMCL) in its Q3 2022 investor letter:
“Omnicell, Inc. (NASDAQ:OMCL) is a leading provider of automated pharmacy and business-analytics software solutions for hospitals, long-term care centers and retail pharmacies. According to the FDA, medication errors cause at least one death every day and injure 1.3 million people annually in the U.S. Furthermore, an estimated 11% of all hospital admissions are related to medication nonadherence. Omnicell’s products and services tackle these challenges through on-site devices and cloud-based solutions to deliver virtually zero dispensing errors in central pharmacies, 66% cost reductions in IV-drug compounding, 90% medication adherence and 2-10% reductions in direct drug costs in hospitals. The market has responded positively to Omnicell’s offerings, as it does business with approximately 50% of U.S. hospitals and 80% of U.S. retail pharmacies.
During the quarter, the company hosted an investor day where it highlighted that previously cited supply-chain and inflation issues are likely to temper margin improvement through 2025. Shares sold off on the news. Nevertheless, we like the potential for product cross-sells and view the margin headwinds as more of a temporary rather than a structural phenomenon. Despite the ubiquity of Omnicell’s products, many customers only use a handful of its offerings. Its competitors do not offer a similar array of complementary products. Relative to an estimated $1.4 billion of sales in 2022, we believe its competitive position allows Omnicell to generate many more years of attractive revenue and profit growth as it pursues a $90-billion total addressable market.”
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Omnicell, Inc. (NASDAQ:OMCL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Omnicell, Inc. (NASDAQ:OMCL) at the end of the third quarter, which was 19 in the previous quarter.
We discussed Omnicell, Inc. (NASDAQ:OMCL) in another article and shared Conestoga Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 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.
