Looking at our position in Ramsay Healthcare (RHC), it would be easy to conclude that private hospitals have been tough places to invest. However, HCA in the International Equities portfolio has been one of our top-performing holdings. The largest private operator in the US, previously known as the Hospital Corporation of America, has been a stellar performer and one of our best-contributing positions in FY23 and now FY24.
We originally bought HCA on July 22 for $US168 and sold it almost a year later at $286, a 70% return. We bought again on November 23 at $225 and are now up 40%, with the share price nearing $US320. Our primary trigger in HCA has been valuation, buying when the stock screens are relatively cheap and selling as their multiples expand into overvalued territory – our quantitative screening in action.
- HCA is now back into overvalued territory, and our next move is likely to be a sell, potentially soon – MM owns HCA in our International Equities Portfolio.
