Summers Value Partners, an investment management company, released its fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The Summers Value Fund LP returned a net1 return of 27.4% in 2024 outperforming 11.3% return for its primary benchmark, the Russell 2000 Index ETF (IWM). The fund also outperformed its secondary benchmark, the Russell 2000 Value Index ETF (IWN), which returned 7.7% for the year. The Fund achieved profitability on both the long and short positions in its portfolio throughout the year. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Summers Value Partners highlighted stocks like ZimVie Inc. (NASDAQ:ZIMV) in the fourth quarter 2024 investor letter. ZimVie Inc. (NASDAQ:ZIMV) engages in the production and distribution of products and solutions designed to support dental tooth replacement and restoration procedures. The one-month return of ZimVie Inc. (NASDAQ:ZIMV) was 1.29%, and its shares lost 21.10% of their value over the last 52 weeks. On January 30, 2024, ZimVie Inc. (NASDAQ:ZIMV) stock closed at $14.17 per share with a market capitalization of $391.08 million.
Summers Value Partners stated the following regarding ZimVie Inc. (NASDAQ:ZIMV) in its Q4 2024 investor letter:
“ZimVie Inc. (NASDAQ:ZIMV): Zimvie remains on the detractor list for the second consecutive year. The stock struggled in the second half of the year following acquisition rumors that circulated last summer, which ultimately proved false. Bloomberg reported in June and July that Zimvie was an acquisition target for South Korean dental implant maker Osstem Implants. On the surface, the acquisition seemed logical: Zimvie, the #5 player in the market, is a single-market company with a strong US presence. Trading at 1x EV/Sales, its valuation appeared cheap compared to dental market peers, largely because management has struggled to execute since the spin-off from ZimmerBiomet (ZBH). However, management succeeded in selling the underperforming Spine segment, which significantly improved the balance sheet. We continue to hold our position in Zimvie, as we believe the stock is worth over $20 per share, either in an acquisition scenario or through improvements to revenue growth or margin performance.”
A medical professional working on a dental implant in an operating room.
ZimVie Inc. (NASDAQ:ZIMV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held ZimVie Inc. (NASDAQ:ZIMV) at the end of the third quarter which was 26 in the previous quarter. In the third quarter of 2024, ZimVie Inc.’s (NASDAQ:ZIMV) revenues amounted to $103.2 million, representing a 2% decrease in reported rates and a 2.2% decline in constant currency when compared to the prior year’s period. While we acknowledge the potential of ZimVie Inc. (NASDAQ:ZIMV) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.