L1 Capital International reduces stake in HCA Healthcare (HCA) after share price increase

L1 Capital, a prominent investment management firm, has shared its third-quarter 2025 update for the L1 Capital International Fund. According to the report, which can be accessed for further details, the fund posted a 2.6% return in the September quarter, lagging behind the benchmark MSCI World Net Total Return Index, which rose 6.1% during the same period.

In its latest investor letter, L1 Capital mentioned HCA Healthcare, Inc. (NYSE: HCA), a leading player in the U.S. healthcare sector, operating hospitals and outpatient services. The companys stock performed well over the past year, gaining 53.65%, with a 2.05% increase in just the past month. As of December 11, 2025, HCAs stock price stood at $482.35 per share, reflecting a market capitalization of $112.87 billion.

L1 Capital's letter revealed that the fund had reduced its stake in HCA Healthcare following a significant increase in the companys stock price. Although still holding a position in HCA, it is no longer one of the fund's top ten holdings. The firm expressed that while previous regulatory concerns about HCA had created opportunities for investment during market downturns, the current outlook is more balanced. The appreciation in HCAs share price has diminished the potential for attractive risk-adjusted returns from the stock, leading to a reduction in their position.

Despite some ongoing interest in HCA, including among hedge funds, the company is not included in L1 Capitals list of most promising investments at this time. According to the funds database, 73 hedge funds held HCA Healthcare at the end of the third quarter, showing no change from the previous quarter. While L1 Capital acknowledges the companys potential, they believe that stocks in the artificial intelligence sector present more promising upside potential with lower associated risks.

For investors seeking more insights into undervalued stocks with high potential, L1 Capital has also suggested considering AI stocks poised to benefit from recent economic trends, such as tariffs and onshoring. Further updates on L1 Capitals hedge fund strategies and stock recommendations can be found on their investor letters page for Q3 2025.

Sources:

• L1 Capital International Trimmed HCA Healthcare (HCA) Following Share Price Appreciation