Here’s What Happened to Humana (HUM) in Q3
Diamond Hill Capital, an investment management company, released its “Select Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. In Q3, the portfolio fell behind the Russell 3000 Index. Relative weakness was concentrated among staples holdings, and discretionary holdings also trailed benchmark peers, impacting the relative performance. On the other hand, the financial sector holdings and overweight to the sector contributed to a slight tailwind in Q3. The strategy returned -5.99% net of fees in Q3 compared to the Russell 3000 Index’s -3.25% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Diamond Hill Select Strategy highlighted stocks like Humana Inc. (NYSE:HUM) in the third quarter 2023 investor letter. Headquartered in Louisville, Kentucky, Humana Inc. (NYSE:HUM) is an American health and well-being company. On November 28, 2023, Humana Inc. (NYSE:HUM) stock closed at $510.45 per share. One-month return of Humana Inc. (NYSE:HUM) was 4.31%, and its shares lost 7.17% of their value over the last 52 weeks. Humana Inc. (NYSE:HUM) has a market capitalization of $62.842 billion.
Diamond Hill Select Strategy made the following comment about Humana Inc. (NYSE:HUM) in its Q3 2023 investor letter:
"Among our top individual contributors in Q3 were new holding Humana Inc. (NYSE:HUM) and American International Group (AIG). Leading health care benefit plans-provider Humana caters heavily to the senior citizen population, many of whom are enrolled in Medicare Advantage plans through Humana. During the quarter, shares were pressured as several large managed care companies said the senior population is utilizing medical care at a higher-than-expected rate, negatively impacting the medical loss ratio of health plans. Compared to fee-for-service, traditional Medicare plans, Medicare Advantage plans offer relative value and should lead to sustainable growth for Humana over time — so we capitalized on the compelling valuation to initiate a position in the quarter."
A smiling customer with a health insurance plan, a customer that was successfully acquired thanks to the company's efforts.
Humana Inc. (NYSE:HUM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 81 hedge fund portfolios held Humana Inc. (NYSE:HUM) at the end of third quarter which was 70 in the previous quarter.
We discussed Humana Inc. (NYSE:HUM) in another article and shared Vltava Fund's views on the company. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
