Summers Value Partners, an investment management firm, published its “Summers Value Fund” second quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly return of 13.6% net of fees, was recorded by the fund for the second quarter of 2021, outpacing the Russell 2000 Index return of 4.1% and the Russell Micro-Cap Index return of 3.8%. You can view the fund’s top 5 holdings to have an idea about their top bets for 2021.
In the Q2 2021 investor letter of Summers Value Partners, the fund mentioned Utah Medical Products, Inc. (NASDAQ: UTMD), and discussed its stance on the firm. Utah Medical Products, Inc. is a Midvale, Utah-based disposable and reusable specialty medical devices developer, that currently has a $325.9 million market capitalization. UTMD delivered a 6.05% return since the beginning of the year, extending its 12-month returns to 9.69%. The stock closed at $89.40 per share on July 30, 2021.
Here is what Summers Value Partners has to say about Utah Medical Products, Inc. in its Q2 2021 investor letter:
“The biggest detractor in the second quarter was Utah Medical (UTMD), which has yet to recover following the pandemic. We believe the company’s business is poised to rebound in the second half of this year as elective procedures return to baseline.”
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Based on our calculations, Utah Medical Products, Inc. (NASDAQ: UTMD) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. UTMD was in 4 hedge fund portfolios at the end of the first quarter of 2021, compared to 6 funds in the fourth quarter of 2020. Utah Medical Products, Inc. (NASDAQ: UTMD) delivered a 2.45% return in the past 3 months.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
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Disclosure: None. This article is originally published at Insider Monkey.
