Meridian Funds, managed by ArrowMark Partners, released its “Meridian Contrarian Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The U.S. Federal Reserve, “Fed”, reduced interest rates by 0.5% on September 18, offering much-needed relief to investors. This key decision aimed to stabilize the markets following a turbulent August filled with worries about declining job market indicators. Against this backdrop, the fund returned 6.85% (net) during the quarter underperforming the 8.75% returns of the Russell 2500 Index and 9.63% 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 third 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 -10.18%, and its shares gained 110.75% of their value over the last 52 weeks. On November 27, 2024, Tenet Healthcare Corporation (NYSE:THC) stock closed at $141.98 per share with a market capitalization of $13.502 billion.
Meridian Contrarian Fund stated the following regarding Tenet Healthcare Corporation (NYSE:THC) in its Q3 2024 investor letter:
“Tenet Healthcare Corporation (NYSE:THC) is one of the top ten U.S. operators of hospitals, outpatient surgery centers, and healthcare business process services. We initiated our position in late 2022, believing that the market’s short-term focus on COVID-related staffing and admissions challenges overshadowed the value of Tenet’s long-term strategy of growing outpatient surgery centers. Tenet’s execution in 2024 has been very strong, driven by consistent patient growth and the accelerated shift to outpatient surgery following its hospital divestitures. The market rewarded this shift during the period. We continue to maintain a top ten position although we decreased our position during the quarter.”
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Tenet Healthcare Corporation (NYSE:THC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held Tenet Healthcare Corporation (NYSE:THC) at the end of the third quarter which was 64 in the previous quarter. In the third quarter, Tenet Healthcare Corporation (NYSE:THC) reported total net operating revenues of $5.1 billion and consolidated adjusted EBITDA of $978 million, a 15% increase over third quarter 2023. 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 top stocks to buy from David Einhorn’s stock portfolio. ClearBridge Mid Cap Strategy added Tenet Healthcare Corporation (NYSE:THC) in its portfolio during Q3 2024, believing in the new management’s capability to leverage the growing offsite surgery market. In addition, please check out our hedge fund investor letters Q3 2024 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.