Michael Burry Loads Up On HCA, Says Selloff Created A Buying Opportunity — ‘Insanely Efficient Compounder'

• Burry called HCA Healthcare “one of the best operator-compounders out there,” while adding that he could add some long-term call options as well.
• Burry said HCA benefited from enhanced Obamacare subsidies for four years, but with those incentives now gone, investor sentiment has weakened, and Wall Street's support for the stock has faded.
• However, he said that the Obamacare headwind does not matter, outlining his bullish outlook on HCA.

Shares of HCA Healthcare Inc. (HCA) were in focus Tuesday after "The Big Short" investor Michael Burry disclosed a new position in the hospital operator, arguing that Wall Street's focus on a potential $900 million headwind from the expiration of enhanced Obamacare subsidies has created a buying opportunity.

He called HCA Healthcare “a terrific, insanely efficient compounder,” while adding that he could add some long-term call options as well.

HCA Healthcare shares were up nearly 1% in Tuesday’s pre-market trade.

Burry Says Wall Street’s Short-Sightedness Provides A Buying Opportunity

Burry said in his latest Substack post that Wall Street's short-term focus has created a buying opportunity in HCA.

Burry said HCA benefited from enhanced Obamacare subsidies for four years, but with those incentives now gone, investor sentiment has weakened, and Wall Street's support for the stock has faded.

During its first-quarter (Q1) earnings call, the company stated that the estimated impact of the lapse of Obamacare subsidies was $150 million. HCA expects the fiscal year 2026 impact to be in the range of $600 million and $900 million.

However, Burry said that the Obamacare headwind does not matter, outlining his bullish outlook on HCA.

“Anything that hurts HCA hurts its competitors more and creates M&A opportunities. It all works out in the end,” Burry said.

Burry Calls HCA A True ‘Olympian’ In M&A

Burry described HCA as "a true Olympian in M&A and efficient operations," praising the hospital operator's ability to grow through acquisitions while maintaining strong profitability.

He said companies that repeatedly make acquisitions while maintaining high return on invested capital (ROIC) over decades are worth close attention, arguing that HCA has consistently achieved this feat.

Burry pointed to HCA's "stellar, steady" ROIC as the key factor driving the stock higher over the long term, despite periodic selloffs tied to regulatory and reimbursement concerns.

How Did Retail Investors React To HCA Stock?

Retail sentiment on Stocktwits around HCA Healthcare trended in the ‘extremely bullish’ territory with message volumes at ‘high’ levels at the time of writing.

HCA stock is down 23% year-to-date and 6% over the past 12 months. The S&P 500 ETF (SPY) is up 23% during this period, while the Vanguard Total Stock Market Index Fund ETF (VTI) is up 24%.

The Vanguard S&P 500 ETF (VOO) is up 23% over the past 12 months.

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