Is Encompass Health (EHC) a Smart Lon-Term Investment?

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Bernzott Capital Advisors, an investment management firm, published its “US Small Cap Value Fund” third-quarter 2022 investor letter – a copy of which can be downloaded here. During the third quarter of the year, the portfolio fell –9.48% (net), below the R2000V’s decline of –4.6% and the R2500V’s decline of –4.5%. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.

In its Q3 2022 investor letter, Bernzott Capital Advisors US Small Cap Value Fund mentioned Encompass Health Corporation (NYSE:EHC) and explained its insights for the company. Founded in 1984, Encompass Health Corporation (NYSE:EHC) is a Birmingham, Alabama-based healthcare company with a $5.6 billion market capitalization. Encompass Health Corporation (NYSE:EHC) delivered a 8.82% return since the beginning of the year, while its 12-month returns are up by 12.97%. The stock closed at $56.47 per share on November 23, 2022.

Here is what Bernzott Capital Advisors US Small Cap Value Fund has to say about Encompass Health Corporation (NYSE:EHC) in its Q3 2022 investor letter:

Encompass Health (EHC): Following the spin-off of Enhabit, its home health and hospice business, Encompass Health is the largest pure play publicly traded owner and operator of US inpatient rehabilitation hospitals. Its scale and position as a low-cost provider are key differentiators that should underpin solid growth as well as FCF generation. The company has a share repurchase plan in place, and the stock yields 1.2%.”

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Our calculations show that Encompass Health Corporation (NYSE:EHC) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Encompass Health Corporation (NYSE:EHC) was in 32 hedge fund portfolios at the end of the second quarter of 2022, compared to 34 funds in the previous quarter. Encompass Health Corporation (NYSE:EHC) delivered a 10.49% return in the past 3 months.

In October 2022, we published an article that includes Encompass Health Corporation (NYSE:EHC) in 11 Best Healthcare Dividend Stocks To Buy Now. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.

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Disclosure: None. This article is originally published at Insider Monkey.