L1 Capital, an investment management firm, released its “L1 Capital International Fund” (unhedged) first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 0.1% (net of fees) in the March quarter surpassing the benchmark return by 2.6% (all in Australian dollars). The Australian dollar appreciated 1.0% against the U.S. dollar in the quarter and 3.4% against the Euro. During the first quarter of 2025, the market performance by sector was mixed. In addition, the letter discussed on trade deficits, Trump administration’s Reciprocal Tariffs, implications of Liberation Day and the shift in Trump’s trade policy and how the firm is managing the fund in this volatile environment. Please check the fund’s top five holdings to know its best picks in 2025.
In its first quarter 2025 investor letter, L1 Capital International 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 4.88%, and its shares gained 3.77% of their value over the last 52 weeks. On April 10, 2025, HCA Healthcare, Inc. (NYSE:HCA) stock closed at $334.99 per share with a market capitalization of $82.476 billion.
L1 Capital International Fund stated the following regarding HCA Healthcare, Inc. (NYSE:HCA) in its Q1 2025 investor letter:
“HCA Healthcare, Inc.’s (NYSE:HCA) share price partially rebounded in the March 2025 Quarter, and was the only company to positively contribute over 1% to the Fund’s quarterly returns. We outlined in the December 2024 Quarterly Report that HCA’s share price had over reacted to concerns that healthcare policy under the Trump administration would be materially adverse for HCA. We took advantage of the market concerns to add to our investment in HCA at a share price well below our assessment of fair value, and it was pleasing to see a partial recovery in the share price during the March 2025 quarter. Six other companies each positively contributed 0.5% or greater to the Fund’s returns, across a diverse range of industries. We believe our unique approach to assessing quality businesses of varying size across a number of diversified sectors provides the opportunity to deliver strong risk adjusted returns in a range of market conditions.
As mentioned earlier, we added to HCA when its share price was below our assessment of fair value. With HCA’s share price increasing substantially, both absolute and relative to market movements, we have recently trimmed the holding. HCA remains one of the Fund’s larger investments.”
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.
We covered HCA Healthcare, Inc. (NYSE:HCA) in another article, where we shared Renaissance Large Cap Growth Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2025 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.