Conventum - Alluvium Global Fund on HCA Healthcare, Inc.
Thesis
Alluvium added to HCA Healthcare after the shares fell despite management reaffirming 2026 guidance. The fund believes investors overreacted to weaker respiratory volumes caused by a mild flu season rather than a deterioration in the core business. It views HCA as a best-in-class operator that uses scale and bargaining power to capture share in a fragmented industry. With the stock below its valuation estimate, the fund increased the position to 6.4%.
“With the shares trading at a discount to our valuation we bought a little more”
Key risks
- Hospital volumes can be affected by seasonal and respiratory trends