ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. Beginning in July, a significant shift away from large caps fueled a rebound and helped the Russell Midcap Index beat its peers with larger sizes. The Russell Midcap Index returned 9.21% in the quarter compared to a 6.08% gain of the large-cap Russell 1000 Index. During the quarter, the strategy underperformed its Russell Midcap Index. Detractors in the industrial and communication services sectors outweighed positive contributions from holdings in IT and healthcare. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Mid Cap Strategy 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 -4.38%, and its shares gained 161.27% of their value over the last 52 weeks. On October 8, 2024, Tenet Healthcare Corporation (NYSE:THC) stock closed at $150.75 per share with a market capitalization of $14.445 billion.
ClearBridge Mid Cap Strategy stated the following regarding Tenet Healthcare Corporation (NYSE:THC) in its Q3 2024 investor letter:
“We also added Tenet Healthcare Corporation (NYSE:THC), the third-largest for-profit hospital operator in the U.S. The company’s new management team is capitalizing on the growing opportunity in offsite surgical centers as insurance companies are increasingly preferring them for outpatient procedures as opposed to hospitals. Additionally, we have high confidence in the management team, which has shown itself to be an astute operator, focusing on more profitable procedures and selling off non-core hospitals at attractive multiples.”
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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, 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 the list of most volatile stocks to buy. 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.