Does Humana (HUM) Have a High Long-Term Growth Rate?

Vltava Fund, an investment management company, recently released its third-quarter 2023 investor letter. A copy of the same can be downloaded here. It will be 15 years since the firm switched to the current investment strategy for the Fund when 2023 ends in a few months. The Fund generated a 420% return across this period, which is approximately 11.8% per annum. The MSCI World Index has increased by 232% over the same period (approximately 8.5% per annum). In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Vltava Fund highlighted stocks like Humana Inc. (NYSE:HUM) in the third quarter 2023 investor letter. Headquartered in Louisville, Kentucky, Humana Inc. (NYSE:HUM) is an American health and well-being company. On October 5, 2023, Humana Inc. (NYSE:HUM) stock closed at $488.98 per share. One-month return of Humana Inc. (NYSE:HUM) was 4.54%, and its shares lost 2.88% of their value over the last 52 weeks. Humana Inc. (NYSE:HUM) has a market capitalization of $60.588 billion.

Vltava Fund made the following comment about Humana Inc. (NYSE:HUM) in its Q3 2023 investor letter:

“A new position in the portfolio is the US health insurer Elevance Health. This sector is quite familiar to us. In fact, we also have shares of another health insurer, Humana Inc. (NYSE:HUM), in our portfolio, which we first bought in 2009. The sector has been very attractive over the long term and its structure favours big players, which both Humana and Elevance Health are. Because each of these two companies also has some specific risk, we decided to increase our investment in the sector by acquiring this second position. Both companies are high-growth in terms of profitability and we expect their above-average growth to continue for quite some time.”

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Humana Inc. (NYSE:HUM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held Humana Inc. (NYSE:HUM) at the end of second quarter which was 68 in the previous quarter.

We discussed Humana Inc. (NYSE:HUM) in another article and shared Diamond Hill Large Cap Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.