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Here’s Why First Eagle Investments Remain Confident in HCA Healthcare (HCA)

First Eagle Investments is an independent, privately owned asset management firm dedicated to serving the needs of individuals and institutions worldwide as well as the financial professionals that advise them. Recently, the fund published its “First Eagle Investments Global Fund” second-quarter 2022 investor letter – a copy of which can be downloaded here. The fund believes that the return to the conditions that prevailed in the aftermath of the Covid-19 swoon—namely, moderate inflation and a very low cost of capital—may be further away than some may think. Global Fund A Shares (without sales charge) posted a return of -10.49% in the second quarter 2022. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, First Eagle Investments Global Fund mentioned HCA Healthcare, Inc. (NYSE:HCA) and explained its insights for the company. Founded in 1968, HCA Healthcare, Inc. (NYSE:HCA) is a Nashville, Tennessee-based healthcare company with a $57.4 billion market capitalization. HCA Healthcare, Inc. (NYSE:HCA) delivered a -22.14% return since the beginning of the year, while its 12-month returns are down by -20.92%. The stock closed at $200.03 per share on September 02, 2022.

Here is what First Eagle Investments Global Fund has to say about HCA Healthcare, Inc. (NYSE:HCA) in its Q2 2022 investor letter:

HCA Healthcare owns and operates 182 hospitals and approximately 2,300 ambulatory sites of care in the US and UK. Although admission volumes have recently increased, the company lowered its sales and earnings guidance for 2022 due to concerns about rising labor costs.

The ongoing shortage of healthcare workers in general, and nurses in particular, has forced operators like HCA to fill many roles with temporary contract employees, which is more expensive than hiring full-time workers. We believe these disruptions are temporary, and we maintain our positive opinion on the ability of HCA’s management to be effective stewards of both the balance sheet and business operations.”

Source: Unsplash

Our calculations show that HCA Healthcare, Inc. (NYSE:HCA) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. HCA Healthcare, Inc. (NYSE:HCA) was in 63 hedge fund portfolios at the end of the second quarter of 2022, compared to 62 funds in the previous quarter. HCA Healthcare, Inc. (NYSE:HCA) delivered a -3.64% return in the past 3 months.

In August 2022, we also shared another hedge fund’s views on HCA Healthcare, Inc. (NYSE:HCA) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page. 

Disclosure: None. This article is originally published at Insider Monkey.