Do Hedge Funds and Insiders Love Tenet Healthcare Corp (NYSE:THC)?

Tenet Healthcare Corp (NYSE:THC) was in 27 hedge funds’ portfolio at the end of the fourth quarter of 2012. THC has seen an increase in hedge fund sentiment recently. There were 23 hedge funds in our database with THC positions at the end of the previous quarter.

To the average investor, there are dozens of indicators investors can use to analyze the equity markets. A pair of the best are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite hedge fund managers can beat the market by a significant amount (see just how much).

Tenet Healthcare Corp (NYSE:THC)

Equally as important, bullish insider trading activity is another way to parse down the financial markets. Just as you’d expect, there are a variety of incentives for an executive to sell shares of his or her company, but just one, very simple reason why they would buy. Many academic studies have demonstrated the market-beating potential of this method if shareholders know where to look (learn more here).

With these “truths” under our belt, it’s important to take a look at the latest action regarding Tenet Healthcare Corp (NYSE:THC).

What have hedge funds been doing with Tenet Healthcare Corp (NYSE:THC)?

Heading into 2013, a total of 27 of the hedge funds we track were long in this stock, a change of 17% from one quarter earlier. With the smart money’s capital changing hands, there exists a select group of key hedge fund managers who were upping their stakes meaningfully.

According to our comprehensive database, Glenview Capital, managed by Larry Robbins, holds the largest position in Tenet Healthcare Corp (NYSE:THC). Glenview Capital has a $449 million position in the stock, comprising 6.3% of its 13F portfolio. Sitting at the No. 2 spot is Samlyn Capital, managed by Robert Pohly, which held a $65 million position; the fund has 2.3% of its 13F portfolio invested in the stock. Other hedgies with similar optimism include Roberto Mignone’s Bridger Management, John Griffin’s Blue Ridge Capital and Sean Cullinan’s Point State Capital.

Now, key money managers were leading the bulls’ herd. Glenview Capital, managed by Larry Robbins, created the most valuable position in Tenet Healthcare Corp (NYSE:THC). Glenview Capital had 449 million invested in the company at the end of the quarter. Robert Pohly’s Samlyn Capital also made a $65 million investment in the stock during the quarter. The other funds with brand new THC positions are Roberto Mignone’s Bridger Management, John Griffin’s Blue Ridge Capital, and Sean Cullinan’s Point State Capital.

What do corporate executives and insiders think about Tenet Healthcare Corp (NYSE:THC)?

Bullish insider trading is best served when the primary stock in question has experienced transactions within the past six months. Over the last six-month time frame, Tenet Healthcare Corp (NYSE:THC) has seen 1 unique insiders buying, and 6 insider sales (see the details of insider trades here).

With the returns exhibited by the aforementioned studies, retail investors should always monitor hedge fund and insider trading activity, and Tenet Healthcare Corp (NYSE:THC) is no exception.

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Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

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