Oakmark Select Fund, an investment advisory firm that provides asset and wealth management published its third-quarter 2020 Investor Letter – a copy of which can be seen here. A return of 5.2% was recorded by the fund for the 3rd Quarter of 2020, trailing below its S&P 500 benchmark that returned 8.9%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.
Oakmark Select Fund, in their Q3 2020 Investor Letter said that they were able to distinguish a value in HCA Healthcare, Inc. (NYSE: HCA) and initiated a position in the company. Healthcare, Inc. is an operator of health care facilities that currently has a $57.108 billion market cap. For the past 3 months, HCA delivered a 24.90% return and settled at $168.77 per share at the closing of January 15th.
Here is what Oakmark Select Fund has to say about HCA Healthcare, Inc. in their Investor Letter:
“We bought one new position in the Fund this quarter, HCA Healthcare. HCA has been a longstanding holding in more diversified Oakmark portfolios, including the Oakmark Fund and the Oakmark Equity and Income Fund. We were happy to take advantage of the pandemic-driven stock price volatility to add it to the Select Fund during the quarter. HCA is the largest operator of for-profit hospitals and related health care services in the U.S. The company benefits from scale and size advantages, an attractive geographic footprint in higher growth markets, best-in-class management and governance, and an equity-friendly approach to capital allocation. Although the Covid-19 pandemic created disruptions across the hospital sector, we believe HCA’s fundamentals have held up remarkably well. Management believes the company will be in an even stronger position coming out of the crisis than it was coming into it and that demand for health care services will be robust for years to come. As the economy normalizes, we expect HCA to resume growing its operating income in the mid-single digits. At less than 10x normal earnings, the shares are selling well below our estimate of intrinsic value.”
Last November 2020, we published an article telling that HCA Healthcare, Inc. (NYSE: HCA) was in 71 hedge funds’ portfolio, its all time high statistics. HCA Healthcare, Inc. delivered a 2.62% return YTD.
Our calculations showed that HCA Healthcare, Inc. (NYSE: HCA) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
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Disclosure: None. This article is originally published at Insider Monkey.
