5 Stocks Hedge Funds Bought Recently

Academic research on hedge funds have shown that the stocks bought by hedge funds outperform the market on average. In this article we will focus on 5 stocks that hedge funds bought last week: two stocks across the oil, petroleum and natural gas sectors and three healthcare stocks.

PBF Energy Inc (NYSE:PBF) the petroleum refinery-based fuel, oil and petroleum products maker has lately attracted hedge fund investments, despite a not-so-good third quarter. Revenues were reported to have dropped from $5.4 billion, in the third quarter of 2012 to $4.9 billion this year. The potential for this company lies in its varied fuels and petroleum product range, buoyed by the three refineries which the company currently operates.

BLUE RIDGE CAPITAL

Tiger-cub’ John Griffin’s, Blue Ridge Capital, has already made a good foray into PBF Energy Inc (NYSE:PBF) stock, with a current overall holding of 7.8% of the stock’s outstanding shares. The position held by Blue Ridge is passive by nature and amasses 3.1 million shares of the company.

PBF Energy Inc (NYSE:PBF) could also be found in the equity portfolios of some other funds such as: Robert Joseph Caruso’s Select Equity Group, which owns a position that amasses 5.4 million shares, valued at $122.3 million. The stake held by Select Equity is the largest among the hedge funds we track. Clint Carlson’s Carlson Capital ownership is 1 million shares, valued at $23.1million.

WPX Energy

WPX Energy Inc (NYSE:WPX), a natural gas and oil exploration company, has been a stock that had top-line hedge funds investing in it. These include John A. Levin’s Levin Capital Strategies holding 3.8 million shares; Zac Hirzel’s Hirzel Capital Management holding position of 2.5 million shares and Frank Brosens’ Taconic Capital Advisors holding 13.8 million shares.

WPX Energy Inc (NYSE:WPX) along with other oil exploration companies, with operations off the Niobrara Shale, is likely to be affected by the recent five-year ban on ‘fracking’ for natural gas in the Colorado, Broomfield region.

Additionally, WPX Energy Inc (NYSE:WPX) is undergoing some reshuffling on the management level as well, with CEO Ralph Hill stepping down along with Taconic Capital hedge fund now holding a sufficiently large position to nominate its representatives on WPX Energy Inc (NYSE:WPX)’s board.

Tenet Healthcare Corp

Tenet Healthcare Corp (NYSE:THC), is a much loved healthcare stock and has attracted Larry Robbins Glenview Capital hedge fund. Knowing Glenview Capital predominantly invests in healthcare, technology and services sectors, the increase in its position in Tenet Healthcare Corp (NYSE:THC) recently is definitely exciting!

The hedge fund increased its holding an additional 1 million shares, raising the overall total of shares it holds to 12.9 million shares.

Other hedge funds which have taken a shine to Tenet Healthcare Corp (NYSE:THC) stocks, have been John Griffin’s Blue Ridge Capital and Robert Pohly’sSamlyn Capital.

Healthways

Healthways, Inc. (NASDAQ:HWAY) is a services company in the wellness industry solutions, with special focus on preventive healthcare and lifestyle management through programs, such as those offered by Dean Ornish, M.D.

A flat third quarter for Healthways, Inc. (NASDAQ:HWAY) did not deter hedge funds Israel Englander’s Millennium Management (holding 6.8 million shares), followed by SAC Capital’s subsidiary CR Intrinsic Investors (owning 6.5 million shares).

The most recent hedge fund activist on Healthways, Inc. (NASDAQ:HWAY) has been Conan Laughlin’s North Tide Capital, which raised his total amount of shares to 3.85 million, from 3.40 million held earlier.

Derma Sciences

Derma Sciences Inc. (NASDAQ:DSCI), is not the run of the mill healthcare stock but a specialty company focused on wound care.  The recent increase in net sales for Derma Sciences has perhaps led to the likes of hedge funds- Julian Baker and Felix Baker’s Baker Bros. Advisors increasing position to 2.6 million shares. Peter Kolchinsky’s RA Capital Management has now boosted its position to 2 million shares, while Stephen Dubois’ Camber Capital Management has now increased the shares it holds to 950 thousand shares.

Disclosure: none

Recommended Reading:

Luxor Capital Group Increases Holding in Altisource Asset Management Corp (AAMC)

Levin Capital Strategies Surges Stake in Pinnacle Foods Inc (PF)

Relational Investors Report 7.3% Position in Hologic, Inc. (HOLX)

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Subscribe

Enter your email:

Delivered by FeedBurner

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!