L1 Capital International Strategy Trimmed HCA Healthcare (HCA) Due to Share Price Appreciation

L1 Capital, an investment management firm, released its “L1 Capital International Fund” (unhedged) fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Strategy focuses on investing in high-quality companies with favorable cashflow-based valuations. The letter highlighted the current investment environment, the Fund’s positioning, portfolio adjustments, and the quarterly (December) and yearly (2025) review. The firm considers valuation analysis essential for potential AI-focused investments; merely having conviction in AI isn’t enough to ensure a successful investment outcome. In general, 2025 was a strong year for all stock markets globally. The fund returned 2.2%, net of fees, compared to 2.5% for the benchmark (MSCI World Net Total Return Index in AUD). For the year, the fund returned 9.8% (net of fees) compared to 12.4% for the Index. In addition, you can check the Strategy’s top five holdings to know its best picks in 2025.

 In its fourth-quarter 2025 investor letter, L1 Capital International Fund highlighted stocks such as HCA Healthcare, Inc. (NYSE:HCA). HCA Healthcare, Inc. (NYSE:HCA) owns and operates hospitals and related healthcare entities. On January 14, 2026, HCA Healthcare, Inc. (NYSE:HCA) stock closed at $478.84 per share. One-month return of HCA Healthcare, Inc. (NYSE:HCA) was 2.63%, and its shares gained 54.74% of their value over the last 52 weeks. HCA Healthcare, Inc. (NYSE:HCA) has a market capitalization of $109.38 billion.

L1 Capital International Fund stated the following regarding HCA Healthcare, Inc. (NYSE:HCA) in its fourth quarter 2025 investor letter:

“At the start of 2025, the market was acutely concerned that healthcare policy under President Trump and the Republicans would significantly negatively impact private hospitals and outpatient service providers such as HCA Healthcare, Inc. (NYSE:HCA) compared to operating conditions since Obamacare and under President Biden. As outlined in the December 2024 Quarterly Report, during this period of overly negative sentiment we were increasing our investment in HCA and it became one of the Fund’s largest holdings. While there have been some adverse regulatory developments, the One Big Beautiful Bill Act also had several provisions that benefited HCA. Today, expectations for operating conditions are more balanced. HCA’s share price increased 55% during 2025 and we have progressively reduced the HCA position, with HCA now being one of the smallest Fund holdings.”

Mizuho Sees Improving Margins Supporting HCA Healthcare into 2026

HCA Healthcare, Inc. (NYSE:HCA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 73 hedge fund portfolios held HCA Healthcare, Inc. (NYSE:HCA) at the end of the third quarter, the same as in the previous quarter. While we acknowledge the risk and potential of HCA Healthcare, Inc. (NYSE:HCA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HCA Healthcare, Inc. (NYSE:HCA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered HCA Healthcare, Inc. (NYSE:HCA) and shared the list of best-performing dividend stocks to invest in. Following share price appreciation L1 Capital International Fund started trimming HCA Healthcare, Inc. (NYSE:HCA) in the previous quarter.  In addition, please check out our hedge fund investor letters Q4 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.