Alluvium Asset Management, an asset management company, released its “Conventum – Alluvium Global Fund” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter, The Fund was up 1.3% in EUR terms and 5.4% in AUD terms but down 5.9% in USD terms. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Conventum – Alluvium Global Fund emphasized stocks such as 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 -0.09%, and its shares lost 1.11% of their value over the last 52 weeks. On March 6, 2025, HCA Healthcare, Inc. (NYSE:HCA) stock closed at $321.75 per share with a market capitalization of $79.904 billion.

Conventum – Alluvium Global Fund stated the following regarding HCA Healthcare, Inc. (NYSE:HCA) in its Q4 2024 investor letter:

"The appointments of Elon Musk to head the Department of Government Efficiency (DOGE) and Robert F. Kennedy Jr as Secretary of the Department of Health and Human Services, have led to mounting concerns that the incoming administration may reduce funding to medical insurers (by allowing enhanced subsidies to expire at the end of 2025). HCA Healthcare, Inc. (NYSE:HCA), the hospital and ambulatory site owner/operator, is a beneficiary of these subsidies. Whilst there was always the risk that these subsidies would not be extended, the share price fall of 26.0% suggests the market considers it a “fait accompli”. This has a long way to play out. HCA also reported third quarter results that were affected by Hurricane Helene, and acknowledged the effect will continue into the fourth quarter, with additional impact from Hurricane Milton. The share price fell 8.9% on the day and continued to drift lower through the quarter. The earnings hit (in annual EPS terms) is estimated to be less than 5%, and the company reaffirmed its 2024 guidance, albeit at the lower end of the range. It also provided a preliminary outlook for 2025 operational earnings growth to be at the upper end of its long term range (which we consider to be 15%-20%). Through all this, our valuation (which is predicated on our view of long term, through the cycle “owner’s earnings”) has not changed. So, whilst early in the quarter we continued our September selling and reduced the Fund’s position (in total from 9.7% to 8.0%), after the share price fall, we bought, by sheer coincidence, exactly the same number of shares back, but at a 19.2% lower price. The price continued to fall, and we ended the quarter with a 7.4% position."

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 discussed HCA Healthcare, Inc. (NYSE:HCA) and shared the list of most undervalued large cap stocks to buy. HCA Healthcare, Inc. (NYSE:HCA) contributed to Conventum – Alluvium Global Fund's performance in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.