Wasatch Global Investors, an investment management firm, published its “Wasatch Small Cap Growth Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. During the fourth quarter, the benchmark Russell 2000® Growth Index rose 0.01% while the Russell 2000 Index increased 2.14%. Underperforming its benchmark, the Wasatch Small Cap Growth Fund— Investor Class slipped -1.42%. For the one-year period ended December 31, 2021, the Fund’s Investor Class gained 8.32% compared to the 2.83% increase in the Russell 2000 Growth Index and the 14.82% rise in the Russell 2000 Index. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Wasatch Small Cap Growth Fund, in its Q4 2021 investor letter, mentioned HealthEquity, Inc. (NASDAQ: HQY) and discussed its stance on the firm. HealthEquity, Inc. is a Draper, Utah-based health care company with a $4.2 billion market capitalization. HQY delivered a 15.46% return since the beginning of the year, while its 12-month returns are down by -34.40%. The stock closed at $51.08 per share on March 07, 2022.
Here is what Wasatch Small Cap Growth Fund has to say about HealthEquity, Inc. in its Q4 2021 investor letter:
“HealthEquity, Inc. (HQY) was also a large detractor. The company is a health-savings account (HSA) custodian that provides technologyenabled service platforms, which allow members to make health-care saving and spending decisions. Members have online access to their taxadvantaged health-savings accounts and can compare treatment options, pay medical bills, earn wellness incentives, and receive personalized benefit and clinical information. HealthEquity now oversees almost six million HSAs and continues to grow—including through its April acquisition of Further, a leading HSA provider with about $1.7 billion in assets under custody. We think HealthEquity’s stock was down primarily because new hiring has been slow and because doctor visits and non-urgent medical procedures have been curtailed during the Covid-19 pandemic. Moreover, the company made an ill-timed acquisition of WageWorks—which is a leading facilitator of employer-sponsored commuter benefits. Like discretionary spending on health care, spending on work-related commuting has been down significantly during the pandemic. Over time, HealthEquity should see some improvement in financial results due to rising interest rates but this improvement will be very gradual. (Current and future holdings are subject to risk.)”
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Our calculations show that HealthEquity, Inc. (NASDAQ: HQY) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. HQY was in 26 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 26 funds in the previous quarter. HealthEquity, Inc. (NASDAQ: HQY) delivered a -9.86% return in the past 3 months.
In February 2022, we also shared another hedge fund’s views on HQY 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.
