Diamond Hill Capital, an investment management company, released its “Large Cap Concentrated Fund” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Q4 saw an uneven increase in markets, capping off yet another strong year for the markets. Stocks broadly increased after the US election, but some gave up most or all of those gains before the end of the year. Against this backdrop, the portfolio trailed the Russell 1000 Index in Q4 and for the full year. The fund returned -2.00% (net) in Q4 vs 2.75% for the index. For the full year, the fund returned 14.24% compared to 24.51% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Diamond Hill Large Cap Concentrated Fund emphasized stocks such as HCA Healthcare, Inc. (NYSE:HCA). HCA Healthcare, Inc. (NYSE:HCA) owns and operates hospitals and related healthcare entities. The one-month return of HCA Healthcare, Inc. (NYSE:HCA) was 0.78%, and its shares lost 2.60% of their value over the last 52 weeks. On March 14, 2025, HCA Healthcare, Inc. (NYSE:HCA) stock closed at $319.39 per share with a market capitalization of $79.318 billion.
Diamond Hill Large Cap Concentrated Fund stated the following regarding HCA Healthcare, Inc. (NYSE:HCA) in its Q4 2024 investor letter:
“Among our bottom individual contributors in Q4 were HCA Healthcare, Inc. (NYSE:HCA) and Freeport-McMoRan. Health care facilities operator HCA Healthcare was negatively impacted in a couple of its markets by recent hurricanes. Further, shares have been pressured since the US election amid growing negative sentiment toward hospitals as investors anticipate potential reductions to safety-net programs such as Medicaid.”
A team of healthcare professionals in lab coats and masks meeting at a hospital ward.
HCA Healthcare, Inc. (NYSE:HCA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 81 hedge fund portfolios held HCA Healthcare, Inc. (NYSE:HCA) at the end of the fourth quarter compared to 66 in the third quarter. While we acknowledge the potential of HCA Healthcare, Inc. (NYSE:HCA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed HCA Healthcare, Inc. (NYSE:HCA) and shared the list of best healthcare stocks for long-term investment. In addition, please check out our hedge fund investor letters Q4 2024 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.