Should You Invest in Tenet Healthcare Corporation (THC)?
Baron Funds, an investment management company, has released its “Baron Health Care Fund” investor letter for the second quarter of 2024. A copy of the letter can be downloaded here. The fund declined 2.55% (Institutional Shares) in the quarter compared to a 1.02% decline for the Russell 3000 Health Care Index (benchmark) and a 3.22% gain for the Russell 3000 Index (Index). The poor performance in the quarter was due to the weight of small industries/markets. In addition, please see the top five fund locations to know your best options in 2024.
Baron Health Care Fund focused on stocks like Tenet Healthcare Corporation (NYSE: THC ) in an investor note for the second quarter of 2024. Tenet Healthcare Corporation (NYSE: THC ) is a diversified health services company beautiful living in Dallas, Texas. Tenet Healthcare Corporation (NYSE:THC)’s one-month return was 9.66%, and its shares gained 94.05% of their value over the past 52 weeks. On August 1, 2024, Tenet Healthcare Corporation (NYSE:THC) stock closed at $147.95 per share with a market capitalization of $13.911 billion.
Baron Healthcare Fund said the following about Tenet Healthcare Corporation (NYSE: THC ) in its Q2 2024 investor letter:
“We have created a small situation in Tenet Healthcare Corporation (NYSE: THC), a leading provider of healthcare services. Tenet’s care delivery network includes United Surgical Partners International (USPI), which operates more than 600 ambulatory surgical centers (ASCs), surgical hospitals, and other outpatient facilities. Tenet also operates more than 50 acute care and specialty hospitals, along with Conifer, a leading provider of revenue cycle management services. The combination of ASCs and hospital supplies in local markets gives USPI the opportunity to negotiate with payers and vendors, supporting industry leading ASC operations. Tenet’s management has been divesting its less competitive acute care hospitals and other non-core assets to focus on its ASC business. The $90 billion outpatient surgery market is enjoying strong global conditions driven by the aging of the American population and a shift in procedures to lower outpatient costs. Outpatient procedures cost 50% less than hospital procedures and are preferred by patients and doctors. Estimates are that an additional 60 billion dollars worth of cases are due to be performed on outpatients, which should drive USPI same-store growth for many years – a combination of high acuity and volumes – strengthened are de novo and M&A projects. in a very isolated place. Tenet’s hospital sale was made at an impressive rate with proceeds used to pay off debt. As Tenet’s fast-growing ASC business increases as a percentage of the company’s total cash flow, we believe the company’s valuation has room to grow. “
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Tenet Healthcare Corporation (NYSE:THC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. According to our database, 63 hedge fund portfolios held Tenet Healthcare Corporation (NYSE:THC) at the end of the first quarter compared to 68 in the previous quarter. In the second quarter, Tenet Healthcare Corporation (NYSE: THC ) reported net operating income of $5.1 billion, and adjusted adjusted EBITDA of $945 million, up 12%. compared to the second quarter of 2023. While we appreciate the potential of Tenet Healthcare Corporation (NYSE). :THC) as an investment, our conviction lies in the belief that AI stocks have the greatest promise to deliver high returns, and we do so in the short term. If you’re looking for an AI stock as promising as NVIDIA but trading at less than 5 times its earnings, check out our report on low price of AI stock.
In another article, we discussed Tenet Healthcare Corporation (NYSE: THC ) and shared Meridian Contrarian Fund’s opinion on the company. Alternatively, please see our hedge fund investor letter Q2 2024 page for other investment letters from hedge funds and other leading investors.
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Description: None. This article was originally published on Insider Monkey.
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