10 Healthcare Stocks to Buy Now According to Billionaire Louis Bacon

In this article, we discuss the 10 healthcare stocks to buy now according to billionaire Louis Bacon. If you want to skip our comprehensive analysis of Bacon’s history, investment philosophy, and hedge fund performance, go directly to 5 Healthcare Stocks to Buy Now According to Billionaire Louis Bacon.

Louis Bacon is the founder and chairman of Moore Capital Management, a hedge fund he founded in 1989 on the back of a $25,000 inheritance he received from his mother. Before founding Moore Capital, Bacon worked at Shearson Lehman Brothers Inc. as Senior Vice President, alongside fortuitous stints at Walter N. Frank & Co. and Bankers Trust previously during his career. He has a degree of MBA in Finance from Columbia Business School in New York and a Bachelor’s degree in Arts in American Literature from Middlebury College in Vermont.

Louis Bacon has made a name for himself trading currencies and commodities on Wall Street. His hedge fund has returned 17.6% in annualized return since 1989 through to 2019. In 2019, the billionaire returned investors’ money in order to focus solely on his personal investments. This decision paid off, as he was able to take riskier bets in a volatile 2020. He returned 70% in the year the pandemic hit the globe, buying US government bonds and taking bold bets on equity and company debt. Moore Global Investment relies on a bold, macro-based approach to global trends in order to generate returns.

As of the third quarter, Bacon’s hedge fund has $6.54 billion in assets under management (AUM), and has grown 0.93% over the last quarter. Some of the notable stocks in Louis Bacon’s portfolio include Microsoft Corporation (NASDAQ:MSFT), which is his second highest holding with 541,111 shares valued at $152.55 million, representing 2.33% of his overall holdings; Alphabet Inc. (NASDAQ:GOOG) where Bacon holds $69.73 million worth of shares, having upped his stake by 156% over the last quarter; and Mastercard Incorporated (NYSE:MA), which represents 0.56% of his fund’s overall portfolio, having upped his stake in the financial company by 902% over the last quarter to stand at 106,905 shares worth $37.16 million.

Our Methodology: 

Let’s take a look at the top 10 healthcare stocks that are presently in the portfolio of Moore Global Investments. Louis Bacon’s 13F portfolio for the third quarter was used for this analysis. Hedge fund sentiment was derived from Insider Monkey’s database of 867 elite hedge funds.

Healthcare Stocks to Buy Now According to Billionaire Louis Bacon

10. HCA Healthcare, Inc. (NYSE:HCA)

Moore Global Investments’ Stake Value: $17.22 million

Moore Global Investments’ 13F Portfolio: 0.26% 

Number of Hedge Fund Holders: 72

First up on our list is HCA Healthcare, Inc. (NYSE:HCA), a healthcare services company that offers various medical and surgical services through its hospitals. As of the third quarter, Moore Global Investment reported owning 70,960 shares in HCA Healthcare, Inc. (NYSE:HCA), valued at $17.22 million which represents 0.26% of the fund’s overall portfolio. This stock was an addition to Louis Bacon’s portfolio over the last quarter.

In late October, Credit Suisse analyst A.J. Rice raised the firm’s price target on HCA Healthcare, Inc. (NYSE:HCA) to $298 from $267, following Q3 quarterly results. The analyst maintained his firm’s ‘Outperform’ rating on the company shares.

At the end of the third quarter, HCA Healthcare, Inc. (NYSE:HCA) posted an EPS of $4.57, beating estimates by $0.56. The firm has benefited from increased patient admissions as rising vaccination rates allow people to gain confidence in hospital visits again.

Investors are loading up on HCA Healthcare, Inc. (NYSE:HCA) stock, as 72 hedge funds out of 867 tracked by Insider Monkey reported owning shares in the company by the end of September. In comparison, 60 hedge funds held stakes in the healthcare company by the end of June.

Just like CVS Health Corporation (NYSE:CVS), Moderna, Inc. (NASDAQ:MRNA) and Zimmer Biomet Holdings, Inc. (NYSE:ZBH), HCA Healthcare, Inc. (NYSE:HCA) is a top healthcare stock in the portfolio of Louis Bacon’s Moore Global Investments.

Investment firm First Eagle Investment Management mentioned HCA Healthcare, Inc. (NYSE:HCA) in its Q3 investor letter. Here’s what the firm said:

“HCA Healthcare owns and operates 185 hospitals and approximately 2,000 sites of care in the US and UK. Admissions to its facilities, depressed during the worst of the Covid-19 outbreak in 2020, have begun to rebound. HCA reported a nearly 20% year-over-year increase in admissions during the second quarter and a 14% increase in revenue, and forecast that volume would continue to improve throughout the year. We maintain our positive opinion of the company’s management team, believing them to be effective stewards of both the balance sheet and HCA’s business operations.”

9. Inspire Medical Systems, Inc. (NYSE:INSP)

Moore Global Investments’ Stake Value: $18.11 million

Moore Global Investments’ 13F Portfolio: 0.27% 

Number of Hedge Fund Holders: 29

Then there’s Inspire Medical Systems, Inc. (NYSE:INSP), a medical technology company that develops minimally invasive solutions for patients with obstructive sleep apnea (OSA). Louis Bacon owns 77,805 shares in the firm as of the end of the third quarter, valued at $18.11 million which represents 0.27% of his fund’s overall portfolio. Announcing its Q3 results on November 2, Inspire Medical Systems, Inc. (NYSE:INSP) posted an EPS of -$0.38, beating estimates by $0.26. Quarterly revenue stood at $61.69 million, exceeding analysts’ forecasts by $6.24 million.

Out of 867 elite hedge funds tracked by Insider Monkey, 29 disclosed ownership of stakes in Inspire Medical Systems, Inc. (NYSE:INSP) at the end of the third quarter. The combined value of these stakes stood at $478.24 million. In comparison, 32 hedge funds held stakes worth $544.16 million in the company a quarter ago.

On November 3, Lake Street analyst Frank Takkinen kept a ‘Buy’ rating on Inspire Medical Systems, Inc. (NYSE:INSP) shares, raising the firm’s price target on the company to $320 from $260. The analyst noted that the company’s performance in the third quarter was exceptional in terms of revenue, new center openings and new territory establishments.

8. United Therapeutics Corporation (NASDAQ:UTHR)

Moore Global Investments’ Stake Value: $21.83 million

Moore Global Investments’ 13F Portfolio: 0.33% 

Number of Hedge Fund Holders: 52

As of the the third quarter, 52 out of 867 hedge funds tracked by Insider Monkey disclosed ownership of stakes in United Therapeutics Corporation (NASDAQ:UTHR), with a combined value of $2.17 billion. This shows a bullish trend from the previous quarter, where 45 hedge funds held stakes worth $2.33 billion in the company.

United Therapeutics Corporation (NASDAQ:UTHR) is a biotechnology company that deals in the development and commercialization of therapies for patients with chronic and life-threatening diseases. In the third quarter, the company posted earnings per share of $4.16, beating estimates by $0.07.

As of the end of the third quarter, Louis Bacon’s Moore Global Investment owns 118,300 shares in United Therapeutics Corporation (NASDAQ:UTHR), which comprises 0.33% of the fund’s total holdings. Louis Bacon upped his stake in United Therapeutics Corporation (NASDAQ:UTHR) by 34% over the last quarter.

7. Zimmer Biomet Holdings, Inc. (NYSE:ZBH)

Moore Global Investments’ Stake Value: $22.50 million

Moore Global Investments’ 13F Portfolio: 0.34% 

Number of Hedge Fund Holders: 47

Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is a US-based company that provides musculoskeletal healthcare services and products around the globe. The firm posted an EPS of $1.81 for the third quarter, beating estimates by $0.05. Revenue for the quarter stood at $1.92 billion, underperforming estimates by $15.61 million.

As of the third quarter, Louis Bacon owns 153,746 shares in Zimmer Biomet Holdings, Inc. (NYSE:ZBH), with a value of $22.50 million which represents 0.34% of his fund’s overall portfolio. The billionaire increased his stake in the company by 532% over last quarter.

On December 9, RBC Capital analyst Shagun Singh initiated coverage of Zimmer Biomet Holdings, Inc. (NYSE:ZBH) with a ‘Sector Perform’ rating and a $140 price target. The analyst finds that the company’s operating environment remains challenged heading into 2022 due to capacity limitations from staffing and hesitant patient sentiment resulting from spread of Omicron variant.

In the third quarter of 2021, 47 hedge funds were long Zimmer Biomet Holdings, Inc. (NYSE:ZBH), holding a combined value of $1.66 billion. In contrast, 48 hedge funds were bullish on the company in the previous quarter, with combined holdings worth $1.78 billion.

6. Seagen Inc. (NASDAQ:SGEN)  

Moore Global Investments’ Stake Value: $25.13 million

Moore Global Investments’ 13F Portfolio: 0.38% 

Number of Hedge Fund Holders: 40

Seagen Inc. (NASDAQ:SGEN) is next on our list, a biotech company in which Louis Bacon holds 148,048 shares worth $25.13 million as of the third quarter. The billionaire lowered his stake in the company by 13% over the previous quarter.

Seagen Inc. (NASDAQ:SGEN) deals in the development of anti-body based therapies for cancer treatments.

40 hedge funds were bullish on Seagen Inc. (NASDAQ:SGEN) at the end of the third quarter. This shows an upward trend from last quarter where 37 hedge funds reported ownership of stakes in the company.

On November 8, Wolfe Research analyst Andrew Galler initiated coverage of Seagen Inc. (NASDAQ:SGEN) with a ‘Peer Perform’ rating and a $195 price target.

In addition to CVS Health Corporation (NYSE:CVS), Moderna, Inc. (NASDAQ:MRNA) and Zimmer Biomet Holdings, Inc. (NYSE:ZBH), Seagen Inc. (NASDAQ:SGEN) is a top healthcare stock in the portfolio of billionaire Louis Bacon.

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