Wellcare Health Plans, Inc.

WCG position long Mohnish Pabrai

Thesis

Wellcare is a textbook example of a company that experienced a significant drop in stock price due to external events, specifically a federal investigation. Despite this, the fundamentals of the business remain strong, and the stock is undervalued, presenting a buying opportunity.

Did it work?

failed confidence: high

The stock price has dropped significantly by 76.2%, which contradicts the long thesis that the stock was undervalued and presented a buying opportunity. The fundamentals being strong has not translated into positive price performance, indicating that the thesis did not hold true.

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