Long Cast Advisers, LLC, a small-cap-focused investment manager, released its fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The cumulative net return of the fund for Q4 2022 increased by 5%, while for the full year, it was 12% down. The fund returned a cumulative 141% net of fees since inception in November 2015 through year-end 2022. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Long Cast Advisers highlighted stocks like Cross Country Healthcare, Inc. (NASDAQ:CCRN) in the Q4 2022 investor letter. Headquartered in Boca Raton, Florida, Cross Country Healthcare, Inc. (NASDAQ:CCRN) provides services for healthcare clients and operates through Nurse and Allied Staffing, and Physician Staffing. On March 16, 2023, Cross Country Healthcare, Inc. (NASDAQ:CCRN) stock closed at $23.20 per share. One-month return of Cross Country Healthcare, Inc. (NASDAQ:CCRN) was -9.38%, and its shares gained 3.07% of their value over the last 52 weeks. Cross Country Healthcare, Inc. (NASDAQ:CCRN) has a market capitalization of $854.231 million.
Long Cast Advisers made the following comment about Cross Country Healthcare, Inc. (NASDAQ:CCRN) in its Q4 2022 investor letter:
“Top contributors in the quarter were CCRD, DAIO and RELL. QRHC and PESI were significant detractors. I pared some Cross Country Healthcare, Inc. (NASDAQ:CCRN), QRHC and RELL at higher prices and in some cases bought back at lower prices, reflecting some effort to hew to a discipline around IRR’s.
This type of trading is not an effort in “market timing”, an endeavor I have no wish to engage in, but one of valuations. My simple parameter, for example, around CCRN is that I think it can support a ~$2B market capitalization so I’ll buy when the market cap is around $1B (+/- 20% say) and sell when it’s above that, a dynamic I’ll try adhere to until my expectation changes on “how big it can be.”
Broadly speaking, when I think about a potential investment, I consider four factors: The probability that a company will succeed, the size of the potential success, how long it may take to unfold and how my expectations on these three factors differ from the overall market. This heuristic, (which is far from groundbreaking), applies to net / nets, turnarounds, growth stocks, etc.
The easiest factor to address is how long it may take to unfold, and the underlying skill around that, like painting and parenting, requires zero intelligence, just patience. Simply being more patient than the market, which is about as difficult as being more patient than a four-year old1, gives the advantage to anyone who can assess the other factors over a longer than six-month time horizon.”
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Cross Country Healthcare, Inc. (NASDAQ:CCRN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Cross Country Healthcare, Inc. (NASDAQ:CCRN) at the end of the fourth quarter which was 20 in the previous quarter.
We discussed Cross Country Healthcare, Inc. (NASDAQ:CCRN) in another article and shared Rhizome Partners’ views on the company. In addition, please check out our hedge fund investor letters Q4 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.
