5 Spin-off Companies in 2023

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1. GE HealthCare Technologies Inc. (NASDAQ:GEHC)

Number of Hedge Fund Holders: 44

GE HealthCare Technologies Inc. (NASDAQ:GEHC) was spun off from General Electric (NYSE:GE) earlier this year. Year to date GE HealthCare Technologies Inc. (NASDAQ:GEHC) has gained about 18% through August 12. GE HealthCare Technologies Inc. (NASDAQ:GEHC) and Boston’s Mass General Brigham hospital group said they have developed an AI algorithm for radiology scheduling with an ability to predict missed or late appointments with up to 96% accuracy.

Hedge funds were quick to pile into GE HealthCare Technologies Inc. (NASDAQ:GEHC), as Insider Monkey’s database of 910 hedge funds shows that 44 hedge funds reported owning stakes in GEHC.

VGI Partners made the following comment about GE HealthCare Technologies Inc. (NASDAQ:GEHC) in its second quarter 2023 investor letter:

GE HealthCare Technologies Inc. (NASDAQ:GEHC) is a global medical technology leader in the Imaging, Ultrasound and Patient Monitoring space. Having initiated a position shortly after it was spun out of parent company GE in late 2022, the stock has become one of our core holdings. We will discuss the investment thesis and upside potential in greater detail later in this letter.

One of our recent new investments is GE HealthCare (GEHC), which was spun out from General Electric (GE) in late 2022. Currently it is our third largest position due to a combination of strong performance and growing the weight (we initiated a position when the company was spun off).

GEHC is a leader in Imaging and Ultrasound machines, which includes PET and CT scans, MRI, X-Ray and ultrasounds – these account for nearly three quarters of revenues. GEHC is a global business with revenues well spread between the US, Europe, China and emerging markets. The business model is both predictable and resilient in our view:…” (Click here to read the full text)

You can also take a peek at Wall Street Analysts See Upside Potential for 10 Stocks with Rising Price Targets and 16 Most Profitable Dividend Stocks.

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