HCA Healthcare (HCA) Rebounded in Q1

Diamond Hill Capital, an investment management company, released its “Large Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets exhibited a mixed performance in Q1 as the new presidential administration generated significant buzz with a flurry of actions, leaving investors uncertain about the future direction. The portfolio trailed the Russell 1000 Value Index benchmark in Q1. The strategy returned 1.36% (net) vs 2.14% returns for the index. To get an idea of the fund’s best choices for 2025, check out its top 5 positions.

In its first-quarter 2025 investor letter, Diamond Hill Large Cap Fund highlighted stocks such as HCA Healthcare, Inc. (NYSE:HCA). HCA Healthcare, Inc. (NYSE:HCA) owns and operates hospitals and related healthcare entities. The one-month return of HCA Healthcare, Inc. (NYSE:HCA) was 3.84%, and its shares gained 11.51% of their value over the last 52 weeks. On May 9, 2025, HCA Healthcare, Inc. (NYSE:HCA) stock closed at $353.70 per share with a market capitalization of $85.091 billion.

Diamond Hill Large Cap Fund stated the following regarding HCA Healthcare, Inc. (NYSE:HCA) in its Q1 2025 investor letter:

“Other top Q1 contributors included Berkshire Hathaway, Waste Management and HCA Healthcare, Inc. (NYSE:HCA). Shares of health care facilities operator HCA Healthcare rebounded in Q1 from a Q4 selloff tied to concerns about heightened policy risks under the new administration, as underlying hospital fundamentals remain strong.”

Is HCA Healthcare, Inc. (HCA) The Best Healthcare Dividend Stock to Invest in?

A team of healthcare professionals in lab coats and masks meeting at a hospital ward.

HCA Healthcare, Inc. (NYSE:HCA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 81 hedge fund portfolios held HCA Healthcare, Inc. (NYSE:HCA) at the end of the fourth quarter compared to 66 in the third 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 covered HCA Healthcare, Inc. (NYSE:HCA) and shared L1 Capital International Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 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.