Cooper Investors Global Equities Fund Sold Its Stake in GE Healthcare (GEHC). Here's Why

Cooper Investors, an investment management firm, released its “Cooper Investors Global Equities Fund (Unhedged)” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned -0.04% in the third quarter, compared to a 6.42% return for the MSCI AC World Index Net Divs in Australian Dollars. However, the fund returned a rolling 12-month return of 18.0% post fees. Since the portfolio structure is primarily not correlated with the index, its returns should not move in line with the index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Cooper Investors Global Equities Fund highlighted stocks such as GE HealthCare Technologies Inc. (NASDAQ:GEHC). GE HealthCare Technologies Inc. (NASDAQ:GEHC) manufactures and markets products, services, and complementary digital solutions used in the diagnosis, treatment, and monitoring of patients. The one-month return of GE HealthCare Technologies Inc. (NASDAQ:GEHC) was 16.30%, and its shares gained 4.35% of their value over the last 52 weeks. On December 05, 2025, GE HealthCare Technologies Inc. (NASDAQ:GEHC) stock closed at $85.46 per share, with a market capitalization of $39.018 billion.

Cooper Investors Global Equities Fund stated the following regarding GE HealthCare Technologies Inc. (NASDAQ:GEHC) in its third quarter 2025 investor letter:

"GE HealthCare Technologies Inc. (NASDAQ:GEHC) is a US based medical device company which was added to the portfolio in late 2023. The company’s primary products are large, sophisticated imaging machines (ultrasounds, X-rays, CT scanners etc.). GEHC was spun out of GE in early 2023, setting the business up to bene t from a classic “focus dividend” - a dedicated management team in charge of capital allocation and strategy now able to drive value creation from a group of assets that had not been optimised within a large organisation like GE.

Early progress was solid, particularly around improvement in operating margin. However, the external operating environment, particularly in China, has been di cult. GEHC’s products are large systems and tend to be somewhat discretionary capital expenditures. The Chinese government has withheld stimulus from hospital budgets, leaving little scope for these sorts of capital expenditures. This risk underlines our preference for businesses providing niche products and services. Additionally, GEHC has been caught in the cross re of trade and tari policy between China and the US as the company both imports components and sells systems to China. Given these uncertainties and our ability to nd attractive opportunities elsewhere (including in healthcare) we exited our GEHC investment in April. We remain on the lookout for attractive spin-o opportunities within our areas of focus."

GE HealthCare Technologies Inc. (NASDAQ:GEHC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 58 hedge fund portfolios held GE HealthCare Technologies Inc. (NASDAQ:GEHC) at the end of the third quarter, which was 72 in the previous quarter. In the third quarter of 2025, GE HealthCare Technologies Inc. (NASDAQ:GEHC) reported revenues of $5.1 billion marking 4% increase year-over-year organically, exceeding the expectations. While we acknowledge the potential of GE HealthCare Technologies Inc. (NASDAQ:GEHC) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered GE HealthCare Technologies Inc. (NASDAQ:GEHC) and shared the list of best digital health stocks to buy. In addition, please check out our hedge fund investor letters Q3 2025 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.