Nomadic Value Partners recently released its letter to investors for the second quarter of 2021, which you can Download here. In the second quarter, the fund posted returns of 9.6% compared to the total return of 8.6% for the S&P 500 Index. You should check out the Top 5 Nomadic Value Stock Picks for Investors to Buy right now, who could be this year’s biggest winners.
In the Q2 2021 letter to investors, the fund highlighted a few stocks and 1Life Healthcare Inc (NASDAQ:ONEM) is one of them. 1Life Healthcare Inc (NASDAQ:ONEM) is a chain of primary health care clinics based in San Francisco. During the past three months, 1Life Healthcare Inc (NASDAQ:ONEM) the stock lost 39%. Here’s what the fund says:
On June 7, One Medical (ONEM) announced the acquisition of Iora Health, a primary care Medicare Advantage (MA PCP) company, for $ 2.1 billion of ONEM shares. The price implies an EV valuation. / forward sales of 7x, a significant discount to comparables, Oak Street Health (OSH, portfolio) and Agilon Health (AGL), which had EV / forward multiples at the time of the announcement of 9x and 8.7x, respectively.However, after analyzing the information provided in combination with some additional scuttlebutt sectors, I decided to sell our small position in the stock on June 18. If you read these quarterly letters regularly, you are probably wondering why I would pass up In short, there are three reasons:
First, Iora Health is not as successful a company as its category leader, Oak Street Health (OSH, current portfolio), which makes me wonder if ONEM is buying a turnaround. Second, the agreement carries significant integration risks, both technological and cultural, and the synergies presented by management are suspect. Third, and possibly the most important, is the time lost as ONEM resolves these two issues over the next 2-3 years. Category leaders are focused on patient acquisition, as they have already proven to be attractive in terms of unit economy at some initial scale. ONEM turning in on itself to plug the holes instead of going all-out in patient acquisition could significantly slow down the base on which revenue can accumulate over the next several years. “
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In the first quarter of 2021, the number of bull hedge fund positions on 1Life Healthcare Inc (NASDAQ:ONEM) stock remained unchanged from the previous quarter (see the table here). Our calculations showed that 1Life Healthcare Inc (NASDAQ:ONEM) is not classified among the 30 most popular stocks among hedge funds.
The 10 largest stocks among hedge funds returned 231.2% between 2015 and 2020 and outperformed S&P 500 Index ETFs by more than 126 percentage points. We know it sounds amazing. You rejected our articles on major hedge fund stocks mainly because other media provided you with biased information about poor performance of hedge funds. You could have doubled the size of your nest egg by investing in the best hedge fund stocks instead of stupid S&P 500 ETFs. here you can watch our video on the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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Disclosure: none. This article was originally published on Monkey initiate.