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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
11 minutes ago
- Yahoo
UnitedHealth Seeks $1B Latin America Exit: Sources
UnitedHealth Group Incorporated (NYSE:UNH) is one of the best Dow stocks to invest in. The company is considering several offers for its Latin American business, according to two insiders familiar with the situation, as it works to recover from a series of major setbacks, including the removal of its CEO and a reported criminal accounting investigation. The largest US health insurer has aimed to exit Latin America since 2022, but selling its Banmedica unit has become more urgent recently due to multiple challenges, one source said. A senior healthcare professional giving advice to a patient in a clinic. New CEO Steve Hemsley told shareholders last week that he is focused on regaining their confidence following a disappointing earnings report and a Wall Street Journal story about a criminal probe into alleged Medicare fraud. UnitedHealth Group Incorporated (NYSE:UNH) maintains it has not been notified by the Department of Justice and stands by its business integrity. UnitedHealth Group Incorporated (NYSE:UNH) has received four non-binding bids for Banmedica, which operates in Colombia and Chile, totaling around $1 billion, according to sources who requested anonymity due to the confidential nature of the negotiations. While we acknowledge the potential of UNH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Sign in to access your portfolio
Yahoo
16 minutes ago
- Yahoo
Altman-Backed Coco Robotics Raises $80 Million for Delivery Bots
Coco Robotics, an urban delivery startup using small autonomous robots, has secured $80 million in new funding from OpenAI CEO Sam Altman and other investors, Bloomberg reported Wednesday. The financing round was led by venture capital firm SNR, with participation from Pelion Venture Partners, Offline Ventures, and Max Altman, Sam's brother. The latest investment brings Coco's total raised capital to over $110 million. The company did not disclose a new valuation. Warning! GuruFocus has detected 7 Warning Sign with DASH. Founded in 2020 and formally known as Cyan Robotics Inc., the Santa Monica-based startup deploys about 1,300 cooler-sized electric robots across cities including Miami, Chicago, Los Angeles and Helsinki. The devices deliver food and small packages and are integrated into logistics platforms from Uber Technologies Inc. (UBER) and DoorDash Inc. (DASH, Financials). Coco also works directly with merchants and recently deepened its partnership with OpenAI. Under a March agreement, the company uses OpenAI's language and vision models alongside its own software stack to help its robots navigate obstacles and make real-time decisions. The two firms also share data from delivery routes to train AI systems. However, CEO Zach Rash said Sam Altman was not involved in structuring that collaboration. Coco is one of several startups racing to bring robotics to last-mile delivery logistics, a segment where cost-cutting and speed remain key challenges. Despite the sector's volatility, investors are betting that Coco's full-stack software and early commercial traction can differentiate it in a growing market. This article first appeared on GuruFocus.
Yahoo
21 minutes ago
- Yahoo
Home Depot Targeted in Los Angeles Immigration Raids
The Home Depot, Inc. (NYSE:HD) is one of the best Dow stocks to invest in. Recently, the company has become a focal point in the recent federal immigration raids and the protests that followed in Los Angeles. On June 6, federal agents targeted a Home Depot in the Westlake area, along with other sites like Ambiance Apparel in downtown L.A., resulting in dozens of arrests. The arrests near The Home Depot, Inc. (NYSE:HD) involved day laborers hired by the store's customers, such as homeowners and contractors who often rely on undocumented workers for home repairs and construction. A The Home Depot, Inc. (NYSE:HD) spokesperson confirmed that the company was not informed about the raids beforehand and was not involved in the enforcement actions. The Atlanta-based retailer now faces challenges as its stores have become common targets for raids, which may discourage customers. On June 9, Home Depot's shares fell 0.6%, closing at $36.20. While we acknowledge the potential of HD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Sign in to access your portfolio
