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News  ›  The Motley Fool

Why One Fund Just Bet $64 Million on a Healthcare Stock Down 63% This Past Year

The Motley Fool Logo The Motley Fool By Jonathan Ponciano
Why One Fund Just Bet $64 Million on a Healthcare Stock Down 63% This Past Year

Engine Capital Management invested $64 million in Acadia Healthcare, acquiring 2.6 million shares despite the stock being down 63% over the past year, signaling potential long-term value in behavioral healthcare services.

Insights
LNVGY   positive

Included as a collaborative technology partner in endpoint innovation


ACHC   neutral

The stock has experienced significant decline, but the investment suggests potential for recovery due to durable demand, fixable margins, and long-term growth prospects in behavioral health services