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The following is part one in a series on in which key thought leaders at MONTICELLOAM, LLC (“Monticello”) discuss their stance on the nursing home industry. Please refer to important disclosures at the end of this article on the website.

In a few short months, a novel coronavirus ignited a global pandemic affecting almost every aspect of daily life. With no clear indication of when, how, or if things will ever go back to the way they were, the capital markets have experienced extreme volatility as people try to assess value in the current environment.

With that as a backdrop, Monticello hosted a company-wide roundtable in which the concept of how one assesses relative value was discussed within the context of skilled nursing.

We’re bullish on the sector because people are going to need skilled nursing, but we’re also disciplined enough to know when to put our toe in the water,” Alan Litt, co-founder of Monticello, replied when asked how investors should view skilled nursing in light of the impacts of COVID-19 and the negative portrayals of the industry in the media.

Mr. Litt went on to explain that while some rehabilitation could be done at home rather than in a medical facility as has been reported in the news, depending on the acuity of a person’s ailments or injuries, skilled nursing might be a person’s only option.

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