Deerfield Management, led by James E. Flynn, has increased its stake in Streamline Health Solutions Inc. (NASDAQ:STRM). In a newly-amended 13G filing with the U.S. Securities and Exchange Commission, Deerfield revealed holding 2.27 million shares of Streamline Health Solutions Inc. (NASDAQ:STRM), up from 1.82 million shares the fund held as of March 31. The stake equates to 12.18% of the company’s common shares, and is passive by nature. Deerfield initiated the position in Streamline Health Solutions Inc. (NASDAQ:STRM) during the fourth quarter of 2013. The investment has yet to pay off, as shares have declined by 59% since the end of that quarter.
Healthcare-focused hedge fund Deerfield Management has experience addressing a wide variety of financing challenges that companies in the healthcare sector face. The fund specializes in funding R&D, managing hostile takeovers, corporate transitions, and financial advisory services. Currently, Deerfield has more than $5 billion worth of assets under management. As of March 31, the market value of the fund’s public equity portfolio stood at $3.09 billion. Its top holdings, in terms of value, following the first quarter included Auspex Pharmaceuticals Inc (NASDAQ:ASPX), Horizon Pharma PLC (NASDAQ:HZNP), and AbbVie Inc (NYSE:ABBV).
Professional investors like Flynn spend considerable time and money conducting due diligence on each company they invest in, which makes them the perfect investors to emulate. However, we also know that the returns of hedge funds on the whole have not been good for several years, underperforming the market. We analyzed the historical stock picks of these investors and our research revealed that the small-cap picks of these funds performed far better than their large-cap picks, which is where most of their money is invested and why their performances as a whole have been poor. Why pay fees to invest in both the best and worst ideas of a particular hedge fund when you can simply mimic the best ideas of the best fund managers on your own? A portfolio consisting of the 15 most popular small-cap stock picks among the funds we track has returned more than 135% and beaten the market by more than 80 percentage points since the end of August 2012, and by 4.6 percentage points in the first quarter of this year (see the details).
Georgia-based Streamline Health Solutions Inc. (NASDAQ:STRM) is engaged in providing transformational data-driven solutions to healthcare organizations, and is active mainly in North America. The company has a market cap of $89.05 million, and does not pay a dividend. Streamline Health Solutions Inc. (NASDAQ:STRM) was able to lessen its first quarter 2015 net loss attributable to common shareholders to $2.16 million, versus $2.90 million in the same period last year. The loss per common share was $0.12, versus $0.16 in the same quarter of 2014. Revenues for the first quarter of 2015 decreased by about 11% year-over-year to $6.2 million. The production backlog at the end of the first quarter was $74.6 million, a 19% increase over the same quarter a year ago.