Voss Capital, LLC an investment management company, released its fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. Voss Capital’s funds, Voss Value Fund, LP, and the Voss Value Offshore Fund, Ltd returned 19.4% and 18.6% net of fees and expenses respectively, in the fourth quarter compared to a 14.0% return for the Russell 2000 Index, 15.3% return for the Russell 2000 Value Index, and 11.7% return for the S&P 500 Index. Voss Value Master Fund’s total gross exposure as of December 31, 2023, was 177.8% and the net long exposure was 80.4%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Voss Capital featured stocks like R1 RCM Inc. (NASDAQ:RCM) in the Q4 2023 investor letter. Headquartered in Murray, Utah, R1 RCM Inc. (NASDAQ:RCM) is a technology-driven solutions-providing company for hospitals and health systems. On February 28, 2024, R1 RCM Inc. (NASDAQ:RCM) stock closed at $14.39 per share. One-month return of R1 RCM Inc. (NASDAQ:RCM) was 33.86%, and its shares gained 2.71% of their value over the last 52 weeks. R1 RCM Inc. (NASDAQ:RCM) has a market capitalization of $6.048 billion.
Voss Capital stated the following regarding R1 RCM Inc. (NASDAQ:RCM) in its fourth quarter 2023 investor letter:
“R1 RCM Inc. (NASDAQ:RCM) is a top player in outsourced Revenue Cycle Management for large hospitals and physician groups. Outsourced revenue cycle management is still in the early innings with only about 30% penetration, and we believe R1 has the most complete and scalable independent (i.e., not affiliated with an insurance company) solution in the marketplace, in what could prove to be a “winner take most” industry. With hospital profitability under pressure and coding and regulatory complexity ever increasing, R1 offers substantial savings via regional labor arbitrage and automation technology to customers through more efficient revenue collection.
The current management team came from Cloudmed, which R1 acquired very recently in June of 2022, and has undertaken the challenging task of cultural and technological integration while being relative public market newcomers under immense scrutiny. Cloudmed offers modular or single-point RCM solutions as opposed to a full end-to-end offering, and it counts 95 out of the top 100 hospitals in the US as customers. Cloudmed is a solid business with upwards of 40% EBITDA margins and 117% net revenue retention, and we think they can achieve a mid-teens revenue CAGR over the next few years while opening the door to upselling R1’s more robust service offering across the broader customer base…” (Click here to read the full text)
A warm smile from a patient towards a receptionist at a doctor’s office.
R1 RCM Inc. (NASDAQ:RCM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, R1 RCM Inc. (NASDAQ:RCM) was held by 30 hedge fund portfolios, down from 26 in the previous quarter, according to our database.
We discussed R1 RCM Inc. (NASDAQ:RCM) in another article and shared the list of most promising stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q4 2023 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.
