Meridian Funds, managed by ArrowMark Partners, released its “Meridian Contrarian Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. Major index returns increased in the quarter due to strong earnings from large-cap technology companies, especially those connected to artificial intelligence. However, the market’s breadth revealed a different picture. The fund returned -5.03% (net) during the quarter underperforming the -4.27% return of the Russell 2500 Index and -4.31% returns of the secondary benchmark the Russell 2500 Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Meridian Contrarian Fund highlighted stocks like Tenet Healthcare Corporation (NYSE:THC) in the second quarter 2024 investor letter. Tenet Healthcare Corporation (NYSE:THC) is a diversified healthcare services company headquartered in Dallas, Texas. The one-month return of Tenet Healthcare Corporation (NYSE:THC) was 1.62%, and its shares gained 121.03% of their value over the last 52 weeks. On September 11, 2024, Tenet Healthcare Corporation (NYSE:THC) stock closed at $157.66 per share with a market capitalization of $15.107 billion.
Meridian Contrarian Fund stated the following regarding Tenet Healthcare Corporation (NYSE:THC) in its Q2 2024 investor letter:
“Tenet Healthcare Corporation (NYSE:THC) is a top-ten U.S. operator of hospitals, outpatient surgery centers, and healthcare business process services. We initiated our position in late 2022 on the belief that the market’s short-term focus on COVID-caused staffing and admissions challenges overshadowed the value of Tenet’s long-term strategy of growing outpatient surgery centers. Tenet accelerated the transition of its business this year toward high-margin and higher return-on-capital surgery centers by divesting hospitals. The market rewarded the shift with a 26% return in the period. Tenet remains a top five holding with growth driven by surgery centers and a continued attractive valuation.”
A room full of medical personnel collaborating on a treatment plan for a patient.
Tenet Healthcare Corporation (NYSE:THC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held Tenet Healthcare Corporation (NYSE:THC) at the end of the second quarter which was 63 in the previous quarter. While we acknowledge the potential of Tenet Healthcare Corporation (NYSE:THC) 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 Tenet Healthcare Corporation (NYSE:THC) and shared Goldman Sachs’ best hedge fund stock picks and the top stocks. Baron Health Care Fund established a small position in Tenet Healthcare Corporation (NYSE:THC) during Q2 2024. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
