Top 5 Stock Picks of Seth Rosen’s Nitorum Capital

2. Cerner Corporation (NASDAQ:CERN)

Nitorum Capital’s Stake Value: $128.97 million

Percentage of Nitorum Capital’s 13F Portfolio: 6.13%

Number of Hedge Fund Holders: 36

Cerner Corporation (NASDAQ:CERN) is an American health information technology company founded in 1979. On December 20, Oracle Corporation (NYSE:ORCL) purchased the company for roughly $28.3 billion.

According to the third-quarter 2021 13F filings, Nitorum Capital owned 1.8 million shares of Cerner Corporation (NASDAQ:CERN) worth $128.97 million, making up 6.13% of the fund’s portfolio. The largest stake in the company was owned by Starboard Value LP with 3.2 million shares worth $228.91 million.

After Cerner Corporation’s (NASDAQ:CERN) acquisition by Oracle Corporation (NYSE:ORCL) for $95 per share, Edward Jones analyst Ashtyn Evans downgraded the company’s shares from Buy to Hold on December 21.

Cooper Investors mentioned Cerner Corporation (NASDAQ:CERN) in their first-quarter 2021 investor letter. Here is what it said:

“The investment in Cerner, made just over a year ago, was based on what we perceived to be a Low-Risk Turnaround opportunity as a refreshed management team sought to increase margins, reduce capex and utilise balance sheet latency with buybacks and acquisitions. Taking account of the tough 2020 for Cerner’s hospital client base the company did a reasonable job executing on these initiatives. However, moving into 2021 more recent observations around intentionality and focus led to a reassessment of the investment proposition, particularly relative to the portfolio’s other technology and software investments.”