Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. Although there was some volatility, markets contributed to strong year-to-date gains in Q3. US stocks increased by 6%, as measured by the Russell 3000 Index, with small- and mid-cap equities accounting for most gains. This is a significant change. The strategy outperformed the Russell 1000 Index in Q3 and returned 7.84% (net) vs 6.08% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.
Diamond Hill Large Cap Strategy highlighted stocks like HCA Healthcare, Inc. (NYSE:HCA) in the third quarter 2024 investor letter. HCA Healthcare, Inc. (NYSE:HCA) owns and operates hospitals and related healthcare entities. The one-month return of HCA Healthcare, Inc. (NYSE:HCA) was -8.88%, and its shares gained 29.26% of their value over the last 52 weeks. On November 22, 2024, HCA Healthcare, Inc. (NYSE:HCA) stock closed at $324.93 per share with a market capitalization of $82.304 billion.
Diamond Hill Large Cap Strategy stated the following regarding HCA Healthcare, Inc. (NYSE:HCA) in its Q3 2024 investor letter:
“Other top Q3 contributors included HCA Healthcare, Inc. (NYSE:HCA) and Caterpillar. Health care facilities operator HCA Healthcare is benefiting from strong acute care hospital and outpatient volumes. The payor mix has remained favorable — a byproduct partly of the company’s dominance in attractive geographies like Florida and Texas, where populations are growing and unemployment is low.”
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HCA Healthcare, Inc. (NYSE:HCA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held HCA Healthcare, Inc. (NYSE:HCA) at the end of the third quarter which was 69 in the previous quarter. While we acknowledge the potential of HCA Healthcare, Inc. (NYSE:HCA) 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 HCA Healthcare, Inc. (NYSE:HCA) and shared the list of top stocks with improving earnings revisions, P/E ratios, EPS growth, and other indicators according to investment bank UBS. 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.