Should You Be Confident in HealthEquity (HQY)?
Wasatch Global Investors, an investment management firm, released its “Wasatch Core Growth Fund” fourth quarter 2023 investor letter. The same can be downloaded here. The market witnessed an escalation of the trend in which the robust operating results of high-quality companies were mirrored in the stock prices during the fourth quarter of 2023. In the fourth quarter, the fund’s Investor Class increased 17.15% outperforming the benchmark Russell 2000 Growth Index, which rose 12.75%, while the broader Russell 2000 Index increased 14.03%. During the year the fund appreciated 33.43% well ahead of the indexes’ returns of 18.66% and 16.93%. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Wasatch Core Growth Fund featured stocks like HealthEquity, Inc. (NASDAQ:HQY) in the Q4 2023 investor letter. Headquartered in Draper, Utah, HealthEquity, Inc. (NASDAQ:HQY) provides financial technology solutions for healthcare and spending decisions. On March 14, 2024, HealthEquity, Inc. (NASDAQ:HQY) stock closed at $82.02 per share. One-month return of HealthEquity, Inc. (NASDAQ:HQY) was 0.90%, and its shares gained 46.91% of their value over the last 52 weeks. HealthEquity, Inc. (NASDAQ:HQY) has a market capitalization of $7.037 billion.
Wasatch Core Growth Fund stated the following regarding HealthEquity, Inc. (NASDAQ:HQY) in its fourth quarter 2023 investor letter:
"Another weak position in the Fund was HealthEquity, Inc. (NASDAQ:HQY), the largest U.S. non-bank custodian for health savings accounts (HSAs). Along with offering HSAs, the company also facilitates employer-sponsored lifestyle and commuter benefits, which include fitness classes, parking programs and transit passes. The stock was down because investors looked ahead to an environment of lower interest rates when the company would earn less income from money held on deposit for customers. While lower rates are a small headwind for HealthEquity, its business model is structured so that the near- to mid-term impact is negligible and more than offset by the continued long-term growth of its entire platform. Given our confidence in HealthEquity, we added to our position on stock-price weakness."
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HealthEquity, Inc. (NASDAQ:HQY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, HealthEquity, Inc. (NASDAQ:HQY) was held by 18 hedge fund portfolios, compared to 19 in the previous quarter, according to our database.
We discussed HealthEquity, Inc. (NASDAQ:HQY) in another article and shared Wasatch Core Growth Fund's views on the company in the previous quarter. 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.
