Multiple Reasons for the Surge of ZimVie (ZIMV) in Q4
Ariel Investments, an investment management company, released its “Ariel Focus Fund” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund increased +11.05% compared to +9.50% and +11.69% returns for the Russell 1000 Value Index and the S&P 500 Index, respectively. The fund increased by +6.97 over the trailing one-year underperforming both indexes’ +11.46% and +26.29% returns. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Ariel Focus Fund featured stocks like ZimVie Inc. (NASDAQ:ZIMV) in the fourth quarter 2023 investor letter. Headquartered in Westminster, Colorado, ZimVie Inc. (NASDAQ:ZIMV) is a medical technology company. On March 14, 2024, ZimVie Inc. (NASDAQ:ZIMV) stock closed at $16.31 per share. One-month return of ZimVie Inc. (NASDAQ:ZIMV) was -21.17%, and its shares gained 156.04% of their value over the last 52 weeks. ZimVie Inc. (NASDAQ:ZIMV) has a market capitalization of $441.737 million.
Ariel Focus Fund stated the following regarding ZimVie Inc. (NASDAQ:ZIMV) in its fourth quarter 2023 investor letter:
"Several stocks in the portfolio had strong returns in the quarter. Manufacturer and distributor of medical devices specializing in spine and dental products, ZimVie Inc. (NASDAQ:ZIMV), advanced following a top- and bottom-line earnings beat and subsequent increase in full year guidance. Also in the quarter, ZIMV announced an agreement to sell its Spine business to an alternative investment firm, further aiding shares. Management believes the deal will be accretive to ZIMV’s revenue growth, EBITDA margin and cash flow conversion, enabling it to streamline operations and use the sale proceeds to pay down debt. We believe the divestiture allows ZIMV to reshape its portfolio as a pure-play dental company in higher-growth end markets with the best long-term growth potential."
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. At the end of the fourth quarter, ZimVie Inc. (NASDAQ:ZIMV) was held by 20 hedge fund portfolios, compared to 21 in the previous quarter, according to our database.
We discussed ZimVie Inc. (NASDAQ:ZIMV) in another article and shared the list of recent spin-off companies that hedge funds are piling into. 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.
