Fidelity Investments, an investment management company, released its “Fidelity Growth Strategies Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The strategy returned -2.39% in the quarter, modestly outpacing the benchmark Russell Midcap Growth Index’s -3.21% return. Security selection drove the outperformance of the strategy in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Fidelity Growth Strategies Fund highlighted stocks like Molina Healthcare, Inc. (NYSE:MOH), in the Q2 2024 investor letter. Molina Healthcare, Inc. (NYSE:MOH) offers managed healthcare services that operate through Medicaid, Medicare, Marketplace, and Other segments. The one-month return of Molina Healthcare, Inc. (NYSE:MOH) was -3.22%, and its shares gained 6.97% of their value over the last 52 weeks. On September 30, 2024, Molina Healthcare, Inc. (NYSE:MOH) stock closed at $344.56 per share with a market capitalization of $20.191 billion.
Fidelity Growth Strategies Fund stated the following regarding Molina Healthcare, Inc. (NYSE:MOH) in its Q2 2024 investor letter:
“On a stock-specific basis, a larger-than-benchmark stake in Molina Healthcare, Inc. (NYSE:MOH) (-28%), a California-headquartered managed care firm, was the biggest relative detractor. The past year has been a difficult one for the managed care industry, due to rising medical costs and government reimbursements that have not kept pace. The past three months, Molina’s stock was dragged down by negative sentiment for the segment, even though its latest earnings report, in April, was better than expected.”
A doctor in scrubs shaking hands with a patient, representing the healthcare services provided to individuals and families.
Molina Healthcare, Inc. (NYSE:MOH) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Molina Healthcare, Inc. (NYSE:MOH) at the end of the second quarter which was 35 in the previous quarter. In the second quarter, Molina Healthcare, Inc. (NYSE:MOH) reported approximately $10 billion in total revenue and $9.4 billion of premium revenue, with adjusted EPS of $5.86. While we acknowledge the potential of Molina Healthcare, Inc. (NYSE:MOH) 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 Molina Healthcare, Inc. (NYSE:MOH) and shared the list of best health insurance stocks to buy. In addition, please check out our hedge fund investor letters Q2 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.