Several Reasons for the Decline of CareMax (CMAX) in Q4
ClearBridge Investments, an investment management company, published its “ClearBridge Small Cap Value Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy outperformed the Russell 2000 Value Index. On an absolute basis, the strategy gained in nine out of eleven sectors it was invested in during the quarter. Industrials, financials, and consumer discretionary sectors were the leading contributors while the healthcare sector was the primary detractor. Overall, stock selection and sector allocation contributed to the relative performance of the strategy in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.
ClearBridge Small Cap Value Strategy highlighted stocks like CareMax, Inc. (NASDAQ:CMAX) in the fourth quarter 2022 investor letter. Headquartered in Miami, Florida, CareMax, Inc. (NASDAQ:CMAX) is a medical service-providing company. On March 8, 2023, CareMax, Inc. (NASDAQ:CMAX) stock closed at $4.1100 per share. One-month return of CareMax, Inc. (NASDAQ:CMAX) was -2.84%, and its shares lost 44.46% of their value over the last 52 weeks. CareMax, Inc. (NASDAQ:CMAX) has a market capitalization of $457.579 million.
ClearBridge Small Cap Value Strategy made the following comment about CareMax, Inc. (NASDAQ:CMAX) 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 such as CareMax, Inc. (NASDAQ:CMAX). The company, which develops software and operates clinics to provide high touch, primary care for Medicare patients, has suffered from labor shortages in hospitals and customers pushing off purchases in preparation for a potential recession. Despite increasing its Medicare Advantage Membership approximately 49% year-over-year in the third quarter and raising full year guidance, the stock declined due to CareMax’s issuance of stock to complete the company’s acquisition of Steward Health Care System. We believe that CareMax, which has generated positive free cash flow in previous years, is well capitalized to expand strategically and build a profitable business that helps patients reduce systemic health care costs. As a result, we continue to maintain our conviction in the position.”
Africa Studio/Shutterstock.com
CareMax, Inc. (NASDAQ:CMAX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held CareMax, Inc. (NASDAQ:CMAX) at the end of the fourth quarter which was 15 in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
Disclosure: None. This article is originally published at Insider Monkey.
