Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

4 Stocks That are Heading in Opposite Directions Today

Page 1 of 2

With all three major indices now in the red in afternoon trading, HCA Holdings Inc (NYSE:HCA), Advanced Micro Devices, Inc. (NASDAQ:AMD), Radius Health Inc (NASDAQ:RDUS), and Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH) are each on the move themselves. In this article, we take a deeper look at the catalysts causing investors to buy and sell these stocks in large quantities. Moreover, we will also examine relevant hedge fund sentiment towards each of these stocks.

Most investors don’t understand hedge funds and indicators that are based on hedge funds’ activities. They ignore hedge funds because of their recent poor performance in the bull market. Our research indicates that hedge funds underperformed because they aren’t 100% long. Hedge fund fees are also very large compared to the returns generated and they reduce the net returns experienced by investors. We uncovered that hedge funds’ long positions actually outperformed the market (see the details here). That’s why we believe investors should pay attention to what hedge funds are buying (rather than what their net returns are).

Going against the tide of red healthcare stocks today is HCA Holdings Inc (NYSE:HCA), whose shares are 6.4% in the green because of better-than-expected guidance. In a filing released on Friday after the market close, HCA Holdings Inc (NYSE:HCA) stated that it expects 2015 adjusted EBITDA to be $7.9 billion, or $0.1 billion higher than its previous guidance. Same facility admissions are expected to be 1.6% higher in the fourth quarter while same facility emergency room visits are expected to rise by 3.6% year-over-year. HCA will report its fourth quarter results on January 28.

Many big name hedge funds were among the 71 elite funds that were long HCA at the end of the third quarter, including Larry Robbins‘ Glenview Capital and David Tepper‘s Appaloosa Management LP.

Follow Advanced Micro Devices Inc (NASDAQ:AMD)
Trade (NASDAQ:AMD) Now!

Advanced Micro Devices, Inc. (NASDAQ:AMD) clawed back some of the losses it gave up in recent weeks today, as its shares are 7% higher in afternoon trading. Although there is no specific reason for the bullish move, short covering profit taking could have something to do with it. Even with today’s rally, Advanced Micro Devices, Inc. (NASDAQ:AMD) shares are still well below the $3.00 per share level that the stock achieved in late December. Hedge funds aren’t very optimistic on Advanced Micro Devices, as only 11 elite funds owned 0.5% of the stock’s float at the end of September.

Follow Hca Holdings Inc. (NYSE:HCA)
Trade (NYSE:HCA) Now!

On the next page, we examine why Radius Health Inc and Tetraphase Pharmaceuticals Inc. are moving.

Page 1 of 2
Loading Comments...
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!