Baron Funds, an investment management company, has released its fourth quarter 2022 investor letter for the ‘Baron Healthcare Fund’. A copy of the same can be downloaded here. In the fourth quarter, the fund grew 9.08% (institutional equities) compared to 11.54% for the Russell 3000 Healthcare Index and 7.56% for the S&P 500 Index. The fund is down 16.90% in 2022, while the Russell 3000 Healthcare Index is down 6.10% and the S&P 500 Index is down 18.11%. Factors such as cash exposure in the luxury market, unfavorable stock selection, and differences in sub-industry exposures caused the fund to underperform in the quarter relative to the benchmark. Plus, check out the fund’s top five holdings to see our best picks for 2022.
Baron Funds highlighted stocks such as HCA Healthcare, Inc. (NYSE:HCA) in its fourth quarter 2022 investor letter. Headquartered in Nashville, Tennessee, HCA Healthcare, Inc. (NYSE:HCA) is a United States-based healthcare service provider. On January 30, 2023, HCA Healthcare, Inc. (NYSE: HCA) stock closed at $253.30 per share. His one-month return for HCA Healthcare, Inc. (NYSE:HCA) is his 5.56%, and the company’s stock has risen 5.52% over the past 52 weeks. HCA Healthcare, Inc. (NYSE:HCA) has a market capitalization of $71.612 billion.
Baron Funds made the following comments about HCA Healthcare, Inc. (NYSE:HCA) in its fourth quarter 2022 investor letter:
“we, HCA Healthcare Co., Ltd. (NYSE:HCA), is one of the nation’s leading providers of healthcare services. As of 30 September 2022, HCA owns, manages and operates 182 hospitals and approximately 2,400 outpatient clinics in 20 states and the United Kingdom. Due to the demographic shift, the company is well positioned to generate sustainable long-term growth. Prior to the COVID pandemic, management expected pricing/mix to perform in the 2% to 3% range, with adjusted patient admissions increasing by 2% to 3%, and long-term growth of 4% to 6%. We were targeting top-line organic growth. COVID-19 disrupted this framework, but management said organic earnings growth was back in the target range of 4% to 6%, and we were on target. We believe that an upper bound of , allows for positive margin leverage. Recently, the company has seen volume trends improving as contract labor costs and wage pressures begin to ease. HCA also has a long-term track record of returning capital to shareholders through special dividends and share buybacks. ”
National Cancer Institute – GcrSgHDrniY – unsplash
HCA Healthcare, Inc. (NYSE:HCA) isn’t on the list of the 30 most popular hedge funds. According to our database, 64 hedge fund portfolios held his HCA Healthcare, Inc. (NYSE:HCA) as of the end of the third quarter, compared with 63 in the previous quarter.
In another article, we covered HCA Healthcare, Inc. (NYSE:HCA) and shared Oakmark Fund’s view of the company. Additionally, for investor letters from hedge funds and other leading investors, visit the Hedge Fund Investor Letters Q4 2022 page.
Disclosure: None. This article was originally published on Insider Monkey.