FPA Crescent Fund on GE HealthCare Technologies Inc.
Thesis
FPA bought GE HealthCare during the quarter as part of a broader shift toward reasonably valued businesses outside the most crowded AI infrastructure trades. The fund characterizes its recent purchases as industry leaders with strong balance sheets and attractive growth profiles. Management believes this type of company can produce an acceptable absolute equity return without requiring highly optimistic assumptions. The investment is consistent with the fund's preference for valuation support and lower risk of permanent impairment.
“our recent purchases are industry leaders, with strong balance sheets and attractive growth profiles.”