Investment management company Bireme Capital recently released its second quarter 2022 investor letter. A copy of the same can be downloaded here. The fund outperformed during the quarter and returned -1.4% net of fees compared to 16.1% for the S&P 500 Index. The outperformance was primarily due to gains made on the fund’s short positions, which contributed 16.9% to the portfolio. You can check the top 5 holdings of the fund to know its best picks in 2022.
Bireme Capital discussed stocks like HCA Healthcare, Inc. (NYSE:HCA) in the second quarter investor letter. HCA Healthcare, Inc. (NYSE:HCA) is a US-based healthcare service company headquartered in Nashville, Tennessee. On August 22, 2022, HCA Healthcare, Inc. (NYSE:HCA) stock closed at $212.39 per share. One-month return of HCA Healthcare, Inc. (NYSE:HCA) was 4.14% and its shares lost 14.87% of their value over the last 52 weeks. HCA Healthcare, Inc. (NYSE:HCA) has a market capitalization of $60.961 billion.
Here is what Bireme Capital specifically said about HCA Healthcare, Inc. (NYSE:HCA):
“HCA Healthcare, Inc. (NYSE:HCA), at 10x 2022 earnings at 6/30/22, is quite cheap despite having many competitive advantages. HCA is the world’s largest hospital company, with 182 hospitals, 125 ambulatory surgery centers, and thousands of physician clinics. The company was started in 1968 by the Frist family, who to this day hold about $11b worth of shares in the company. HCA sees 2m patients per year and is on track to generate about $60b in revenue for 2022. We have owned the stock for years, first writing about it in 4Q17.
Though it has appreciated ~230% since our initial purchases, HCA trades at a lower earnings multiple today due to excellent business results. HCA’s long-term track record is very impressive. They have methodically expanded their healthcare empire over the decades, achieving annual revenue growth of 7% and EBITDA growth of 8% since 2010. This growth has not come with a rise in sharecount; in fact, shares have declined from 448m in 2013 to 295m today due to repurchases. Instead, the growth has been due to the high returns on capital enjoyed by the firm, with ROIC of more than 20%.
HCA’s operating results are also better than most of its peers, many of whom struggle to consistently generate free cash flow and solid returns on capital. Among nonprofits, smaller community hospitals have notoriously weak financials. Health care services businesses consistently over-index in bankruptcy filings. The industry is not for the faint of heart, but HCA has used its scale and financial strength to outperform its peers over a long period of time…” (Click here to read more)
Photo by National Cancer Institute on Unsplash
HCA Healthcare, Inc. (NYSE:HCA) is not on the list of 30 Most Popular Stocks Among Hedge Funds. As per our database, HCA Healthcare, Inc. (NYSE:HCA) was held by 63 hedge fund portfolios at the end of the first quarter, which was 62 in the previous quarter.
We discussed HCA Healthcare, Inc. (NYSE:HCA) in another article and shared billionaire Larry Robbins’ list of healthcare stocks to buy now. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.
Disclosure: None. This article is originally published at Insider Monkey.
