Should You Consider Investing in Cross Country Healthcare (CCRN)?

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Rhizome Partners, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. For the first quarter of 2021, Rhizome Partners generated a net loss of 9.9% versus a 4.6% loss for the Standard & Poor’s 500 Index and a 5.3% loss for the National Association of Real Estate Investment Trusts (NAREIT) Index. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Rhizome Partners mentioned Cross Country Healthcare, Inc. (NASDAQ:CCRN) and explained its insights for the company. Founded in 1986, Cross Country Healthcare, Inc. (NASDAQ:CCRN) is a Boca Raton, Florida-based employment agency company with a $663.3 million market capitalization. Cross Country Healthcare, Inc. (NASDAQ:CCRN) delivered a -37.46% return since the beginning of the year, while its 12-month returns are up by 6.05%. The stock closed at $17.36 per share on June 01, 2022.

Here is what Rhizome Partners has to say about Cross Country Healthcare, Inc. (NASDAQ:CCRN) in its Q1 2022 investor letter:

“During the quarter, we increased our allocation to the two staffing companies, including Cross Country Healthcare. CCRN sold off upon the announcement of the CEO’s transition to chairman. We believe this will allow Kevin Clark to focus on strategic decisions and delegate the day-to-day operations to the new CEO. Cross Country is an asset-light business trading at an estimated 10 times normalized P/FCF and roughly 7 times 2021 P/FCF. The key risk is that hospitals will stop using staffing companies to fill nursing needs and move the function in-house. This is typical drama within the nurse-staffing business every few years. Given the current nursing shortage, we believe this risk is low and Cross Country will continue to play a significant role in nurse staffing.”

Our calculations show that Cross Country Healthcare, Inc. (NASDAQ:CCRN) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Cross Country Healthcare, Inc. (NASDAQ:CCRN) was in 22 hedge fund portfolios at the end of the first quarter of 2022, compared to 19 funds in the previous quarter. Cross Country Healthcare, Inc. (NASDAQ:CCRN) delivered a -19.33% return in the past 3 months.

In February 2022, we also shared Rhizome’s Q4 2021 views on Cross Country Healthcare, Inc. (NASDAQ:CCRN) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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