Ensign Group Inc

Despite recent pressure on shares due to a short-seller report questioning its quality-of-care metrics and staffing practices, we continue to believe that Ensign Group, Inc. is one of the most compliance-conscious firms in the health-care space. Our long-standing relationship with the management team reinforces our confidence in their operational integrity and commitment to quality care. We view Ensign as one of our best ideas in the sector, indicating our strong belief in its long-term potential.

Ensign Group, Inc. (ENSG), an operator of skilled-nursing facilities and a long-time holding in the Fund, was one of the most notable detractors. The shares were hit hard by a negative report from a short seller. We don’t agree with the report, and we think Ensign features a favorable risk-return profile in the wake of its recent downturn. This indicates our belief in the company's resilience and potential for recovery, making it a compelling investment opportunity.

Ensign Group, Inc. (ENSG) is a long-time holding in our portfolio, and we know the company’s management team well. Despite recent pressure on shares due to a short-seller report questioning the company’s quality-of-care metrics and staffing practices, we continue to believe that Ensign is one of the most compliance-conscious firms in the health-care space. Our confidence in the company remains strong, and we view it as one of our best ideas in the sector.

Ensign Group, Inc. is a longtime holding in the portfolio, and we know the company’s management team well. We spoke with the team after a short-seller report questioned the company’s quality-of-care metrics, staffing practices, and certain related-party business arrangements. Despite this, we continue to believe that Ensign is one of the most compliance-conscious firms in the health-care space and view it as one of our best ideas in the sector.

Ensign Group, Inc. is a longtime holding in the portfolio, and we know the company’s management team well. We spoke with the team after a short-seller report questioned the company’s quality-of-care metrics, staffing practices, and certain related-party business arrangements. Despite this, we continue to believe that Ensign is one of the most compliance-conscious firms in the health-care space and view it as one of our best ideas in the sector.

Ensign Group, Inc. operates skilled nursing and senior living facilities and has shown strong performance with annual revenues up 18.7% from the prior year. The company reported strong fourth-quarter and full-year 2025 results, which were well received by the market. Management's guidance for full-year 2026 earnings and revenue was also positively viewed, highlighting improvements in occupancy, skilled nursing days, and Medicare revenue. Ensign is recognized as one of the best operators in the health-care sector, reinforcing our confidence in its growth potential.

We added Ensign to the portfolio a year ago. Our work on Ensign led us to Pennant. Like Ensign, the company has a highly decentralized, 'locally-led' operating model. This approach fosters entrepreneurship, accountability, and a strong focus on delivering high-quality patient care. Both companies are high growth industry leaders and are great examples of our ongoing process of upgrading the portfolio.

Ensign Group, Inc. is a long-time holding in our portfolio, and we continue to believe that it is one of the most compliance-conscious firms in the health care space. Despite recent pressure on shares due to a short-seller report questioning the company's quality-of-care metrics and staffing practices, we spoke with the management team and remain confident in their operations. We view Ensign as one of our best ideas in the sector, indicating our strong belief in its long-term potential.