Should You Still Invest in Select Medical Holdings (SEM)?

Miller Howard Investments, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly return of 3.5% (yield) was recorded by the fund for the third quarter of 2021, compared to the 1.5% for the S&P 500 for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Miller Howard Investments, in its Q3 2021 investor letter, mentioned Select Medical Holdings Corporation (NYSE: SEM) and discussed its stance on the firm. Select Medical Holdings Corporation is a Mechanicsburg, Pennsylvania-based healthcare company with a $3.8 billion market capitalization. SEM delivered a 4.88% return since the beginning of the year, while its 12-month returns are up by 5.76%. The stock closed at $29.01 per share on December 29, 2021.

Here is what Miller Howard Investments has to say about Select Medical Holdings Corporation  in its Q3 2021 investor letter:

“AFTER A METEORIC RISE OVER THE PAST YEAR, small-cap stocks reversed course with the Russell 2000 Index down -4.4% for the quarter. Much of the downdraft was focused on stocks that had done well in the pandemic environment but lost favor with investors who see a recovery on the horizon. Our largest detractors have all benefitted from pandemic-driven demand. Lastly, Select Medical (SEM) has also seen strong investment, but its rehabilitation facilities have had a surge of patients from hospitals looking to free beds–a trend that will likely slow as the pandemic ends.”

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Based on our calculations, Select Medical Holdings Corporation (NYSE: SEM) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. SEM was in 22 hedge fund portfolios at the end of the third quarter of 2021, compared to 24 funds in the previous quarter. Select Medical Holdings Corporation (NYSE: SEM) delivered a -21.02% return in the past 3 months.

In November 2021, we published an article that includes SEM in the Top 5 Stocks To Buy According to Ken Heebner’s Capital Growth Management. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

Disclosure: None. This article is originally published at Insider Monkey.