Greenlight Capital, an investment management company, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. For 2022, the fund returned 36.6% net of fees and expenses compared to an 18.1% loss for the S&P 500 Index. 2022 was an exceptionally good year for the strategy as the market environment was favorable, and the firm expects attractive, absolute, and risk-adjusted returns to be achieved over the long term. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Greenlight Capital highlighted stocks like Tenet Healthcare Corporation (NYSE:THC) in the Q4 2022 investor letter. Headquartered in Dallas, Texas, Tenet Healthcare Corporation (NYSE:THC) provides diversified healthcare services. On January 17, 2023, Tenet Healthcare Corporation (NYSE:THC) stock closed at $53.05 per share. One-month return of Tenet Healthcare Corporation (NYSE:THC) was 14.95%, and its shares lost 31.26% of their value over the last 52 weeks. Tenet Healthcare Corporation (NYSE:THC) has a market capitalization of $5.736 billion.
Greenlight Capital made the following comment about Tenet Healthcare Corporation (NYSE:THC) in its Q4 2022 investor letter:
“Though we believe we are in the middle stages of a bear market, we did establish a new medium-sized long position in Tenet Healthcare Corporation (NYSE:THC) during the fourth quarter.
THC is an operator of hospitals and ambulatory surgery centers (ASC). In recent years, the company has grown and transitioned its business mix towards its higher-margin ASCs. This shift has enabled the company to generate significant, and what we believe to be sustainable, cash flows.
During 2022, the company lowered its guidance due to COVID and inflationary headwinds, resulting in its shares declining by more than 50% year-to-date through late October. We believe this pullback offered an attractive opportunity to participate in the company’s transformation, as we expect its ASC growth to remain strong and its now smaller hospital portfolio to improve from both a cost and volume perspective. We acquired our shares from late December through the beginning of January for an average price of $48.61, or 8.7x 2023 consensus earnings. THC recently announced and began its plan to repurchase about 20% of the outstanding shares by the end of 2024.”
Tenet Healthcare Corporation (NYSE:THC) is not on our 30 Most Popular Stocks Among Hedge Funds list. As per our database, 60 hedge fund portfolios held Tenet Healthcare Corporation (NYSE:THC) at the end of the third quarter, which was 61 in the previous quarter.
We discussed Tenet Healthcare Corporation (NYSE:THC) in another article and shared ClearBridge Investments’ views on the company. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
Disclosure: None. This article is originally published at Insider Monkey.
