Why is MM holding RHC?

Hi Nick,

A very fair question and while RHC is not our proudest moment the answer is straightforward;

• If we held no position in either we would be looking to buy RHC at current levels, but not CTD
• CTD has an external risk leading into the UK election that we were uncomfortable with, so we cut the position to reduce risk.
• While RHC has been under pressure, we find it easier to value the sum of the parts, being property and then the operating businesses – which gives us more comfort relative to CTD.
• On review,  we focussed too heavily on this valuation as a driver for holding. There are many other factors at play, with valuation only one piece of the puzzle.

We believe RHC is “cheap” under $50 and we are happy to remain patient for now. If our position was smaller (currently 5%), we would be averaging.

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Ramsay Healthcare Ltd (RHC)

LAST UPDATED 06/06/2024 15:09

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Ramsay Healthcare Ltd (RHC)

LAST UPDATED 06/06/2024 15:09