Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) investors should be aware of an increase in activity from the world's largest hedge funds recently.
If you'd ask most traders, hedge funds are assumed to be slow, outdated investment vehicles of years past. While there are greater than 8000 funds with their doors open today, we at Insider Monkey hone in on the top tier of this club, about 450 funds. It is widely believed that this group oversees the majority of the hedge fund industry's total capital, and by watching their highest performing picks, we have unearthed a few investment strategies that have historically beaten the market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we've began to sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 25 percentage points in 6.5 month (see the details here).
Equally as beneficial, positive insider trading sentiment is a second way to break down the investments you're interested in. Obviously, there are lots of reasons for an upper level exec to drop shares of his or her company, but just one, very simple reason why they would buy. Several empirical studies have demonstrated the impressive potential of this method if "monkeys" know what to do (learn more here).
Now, it's important to take a gander at the key action surrounding Allscripts Healthcare Solutions Inc (NASDAQ:MDRX).
At year's end, a total of 34 of the hedge funds we track held long positions in this stock, a change of 10% from the third quarter. With the smart money's sentiment swirling, there exists a few key hedge fund managers who were upping their stakes significantly.
Of the funds we track, Arthur B Cohen and Joseph Healey's Healthcor Management LP had the biggest position in Allscripts Healthcare Solutions Inc (NASDAQ:MDRX), worth close to $158 million, accounting for 8.6% of its total 13F portfolio. Sitting at the No. 2 spot is Clifton S. Robbins of Blue Harbour Group, with a $51 million position; the fund has 5.7% of its 13F portfolio invested in the stock. Some other hedgies that are bullish include Michael Blitzer's Kingstown Capital Management, Thomas Steyer's Farallon Capital and Thomas Ellis and Todd Hammer's North Run Capital.
As industrywide interest jumped, key money managers have been driving this bullishness. Farallon Capital, managed by Thomas Steyer, initiated the most valuable position in Allscripts Healthcare Solutions Inc (NASDAQ:MDRX). Farallon Capital had 18 million invested in the company at the end of the quarter. Thomas Ellis and Todd Hammer's North Run Capital also initiated a $17 million position during the quarter. The other funds with new positions in the stock are SAC Subsidiary's CR Intrinsic Investors, Glenn Russell Dubin's Highbridge Capital Management, and Martin Whitman's Third Avenue Management.
Insider purchases made by high-level executives is most useful when the company in focus has experienced transactions within the past six months. Over the last six-month time frame, Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) has seen 5 unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the results shown by Insider Monkey's strategies, everyday investors should always watch hedge fund and insider trading activity, and Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) is no exception.
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