From Yahoo Finance · · 1m 20s
Robert Half's slow recovery could redeem past mistakes
A fund manager who bought Robert Half at the wrong time now sees signs the staffing company's turnaround is working.
In brief
A fund manager who bought Robert Half at the wrong time now sees signs the staffing company's turnaround is working. Patient investors in Robert Half may be vindicated as the recruitment market shows early signs of recovery, though the stock remains volatile. Originally reported by Yahoo Finance.
Fund manager admits past buying mistakes
Alluvium Asset Management's Conventum Global Fund bought Robert Half shares during price drops in May, August, and October, later calling those purchases mistakes in hindsight.
“hindsight suggests our purchasing during price descents in May, August and October were mistakes”
But the recruitment market is recovering
The fund now sees Robert Half's recent results as evidence that the recruitment and outplacement market is slowly recovering, making those earlier purchases look less foolish.
“Our expectation that the recruitment / outplacement market will slowly recover, appears, going by Robert Half's recent results, to be bearing fruit”
Stock up 23.5% since December
Robert Half shares have gained 23.5% since the fund last discussed the company in December, though the stock declined 12% over the past month and trades at $38.30 per share.
Fund holds 2.7% position, no trading
Alluvium maintained its Robert Half position at 2.7% of the fund without buying or selling, while management remains cautiously optimistic about the company's prospects.
“We did not trade the stock. The Fund's position is now 2.7%.”
Hedge fund interest declining
Only 30 hedge funds held Robert Half at the end of the second quarter, down from 36 in the previous quarter, as some investors prefer AI stocks with greater upside potential.
The one thing
Patient investors in Robert Half may be vindicated as the recruitment market shows early signs of recovery, though the stock remains volatile.
