Wedgewood Partners, an investment management company, released its “Focused SMID Cap Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 14.8% compared to a 7.4% return for the Russell 2500 Index. For the year 2022, the fund returned -19.0% compared to a -18.4% return for the benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Wedgewood Partners highlighted stocks like Maximus, Inc. (NYSE:MMS) in its Q4 2022 investor letter. Headquartered in Tysons, Virginia, Maximus, Inc. (NYSE:MMS) is a business process services provider to the government sector. On March 7, 2023, Maximus, Inc. (NYSE:MMS) stock closed at $80.54 per share. One-month return of Maximus, Inc. (NYSE:MMS) was 6.56%, and its shares gained 7.76% of their value over the last 52 weeks. Maximus, Inc. (NYSE:MMS) has a market capitalization of $5 billion.
Wedgewood Partners made the following comment about Maximus, Inc. (NYSE:MMS) in its Q4 2022 investor letter:
“Maximus, Inc. (NYSE:MMS) also contributed to portfolio performance as they reported adjusted 18% organic revenue growth during the quarter. While investors continued to fixate on the near-term effects of the Biden Administration’s prolongation of the 2020 Covid-19 Public Health Emergency, the Company continues to win business elsewhere, with a 2.3X book to bill ratio and a backlog approaching $20 billion, including a massive $6.6 billion contract win with CMS. Further, Congress legislated the return of Medicaid redeterminations for 2023, which MAXIMUS will help implement and should lead to substantial earnings growth over 2022. We slightly pared our positions in the holding when it eclipsed our maximum weighting limit of 7%.”
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Maximus, Inc. (NYSE:MMS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Maximus, Inc. (NYSE:MMS) at the end of the fourth quarter which was 18 in the previous quarter.
We discussed Maximus, Inc. (NYSE:MMS) in another article and shared Wedgewood Partners’ views on the company 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.
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Disclosure: None. This article is originally published at Insider Monkey.