Aristotle Small Cap Equity Strategy Sold ModivCare (MODV) Due to a Deteriorating Fundamental Outlook
Aristotle Capital Boston, LLC, an investment advisor, released its 'Small Cap Equity Strategy' first quarter 2025 investor letter. A copy of the letter can be downloaded here. The volatility observed in 2024 continued into the first quarter of 2025. The Russell 2000 Index experienced volatility in Q1 2025, losing -9.48% after a strong 2024. Due to uncertainty, geopolitical tensions, and a longer rate environment, February and March were challenging. In the first quarter, the strategy delivered a return of -7.34% net of fees (-7.20% gross of fees), outperforming the Russell 2000 Index's -9.48% total return. For more information on the fund's best picks in 2025, please check its top five holdings.
In its first-quarter 2025 investor letter, Aristotle Capital Small Cap Equity Strategy highlighted stocks such as ModivCare Inc. (NASDAQ:MODV). ModivCare Inc. (NASDAQ:MODV) is a technology-enabled healthcare services company with a market capitalization of $12.773 million. The one-month return of ModivCare Inc. (NASDAQ:MODV) was -9.74%, and its shares lost 96.80% of their value over the last 52 weeks. On May 15, 2025, ModivCare Inc. (NASDAQ:MODV) stock closed at $0.8899 per share.
Aristotle Capital Small Cap Equity Strategy stated the following regarding ModivCare Inc. (NASDAQ:MODV) in its Q1 2025 investor letter:
"ModivCare Inc. (NASDAQ:MODV), is a Colorado-based healthcare services company that provides non-emergency medical transportation (NEMT), homecare services, and remote patient monitoring to Medicaid and Medicare populations. We sold the position due to a deteriorating fundamental outlook that resulted in a deteriorating financial position."
A telemedicine consultation taking place with a doctor and a patient over video call.
ModivCare Inc. (NASDAQ:MODV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held ModivCare Inc. (NASDAQ:MODV) at the end of the fourth quarter which was 17 in the previous quarter. In Q1 2025, ModivCare Inc. (NASDAQ:MODV) reported revenue of $650.7 million, down 5% year over year and 2% sequentially. While we acknowledge the potential of ModivCare Inc. (NASDAQ:MODV) 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 undervalued AI stock set for massive gains.
In another article, we covered ModivCare Inc. (NASDAQ:MODV) and shared the list of penny stocks with insider buying in 2025. In addition, please check out our hedge fund investor letters Q1 2025 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.
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