ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The strategy outperformed the Russell 2000 Index in the fourth quarter. The strategy gained in eight of the eleven sectors it was invested in the quarter on an absolute basis. Industrials, IT, and financial sectors were the leading contributors while healthcare detracted from the performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.
ClearBridge Small Cap Strategy highlighted stocks like Omnicell, Inc. (NASDAQ:OMCL) in the Q4 2022 investor letter. Headquartered in Mountain View, California, Omnicell, Inc. (NASDAQ:OMCL) is a medication management solutions and adherence tools provider for healthcare systems. On February 27, 2023, Omnicell, Inc. (NASDAQ:OMCL) stock closed at $52.96 per share. One-month return of Omnicell, Inc. (NASDAQ:OMCL) was -4.52%, and its shares lost 60.03% of their value over the last 52 weeks. Omnicell, Inc. (NASDAQ:OMCL) has a market capitalization of $2.365 billion.
ClearBridge Small Cap Strategy made the following comment about Omnicell, Inc. (NASDAQ:OMCL) in its Q4 2022 investor letter:
“Positive relative performance was partially offset by detractors within the health care sector, particularly health care equipment and solutions providers. Companies such as R1 RCM (RCM), a provider of revenue cycle management to hospital and physician practices, and Omnicell, Inc. (NASDAQ:OMCL), which provides pharmacy automation solutions, continue to face challenges stemming from hospital labor availability, resulting in delays in collections and sales cycles. Additionally, many of these companies’ customers have placed freezes on capital investment and pushed contracts into the future in anticipation of a recession. However, we feel that market negativity surrounding these stocks is overblown and these companies have strong underlying drivers that will prevail. R1 RCM maintains a large book of long-term contract business, has increased cross-selling opportunities from its 2022 acquisition of CloudMed and should benefit from a growing demand to improve health care collections. We feel this will generate strong free cash flow and returns over time. Likewise, Omnicell is a leader in the pharmacy automation space, which we expect will be a long-term trend that will create significant value for shareholders.”
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Omnicell, Inc. (NASDAQ:OMCL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Omnicell, Inc. (NASDAQ:OMCL) at the end of the fourth quarter which was 23 in the previous quarter.
We discussed Omnicell, Inc. (NASDAQ:OMCL) in another article and shared Carillon Tower Advisers’ 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.
