Do Hedge Funds Love Health Net, Inc. (HNT)?

As one would reasonably expect, some big names have jumped into Health Net, Inc. (NYSE:HNT) headfirst. Arrowgrass Capital Partners, managed by Nick Niell, created the most valuable position in Health Net, Inc. (NYSE:HNT). Arrowgrass Capital Partners had $122.9 million invested in the company at the end of the quarter. John Orrico’s Water Island Capital also made a $66.5 million investment in the stock during the quarter. The following funds were also among the new HNT investors: Robert Emil Zoellner’s Alpine Associates, Thomas Steyer’s Farallon Capital, and John Bader’s Halcyon Asset Management.

Let’s now review hedge fund activity in other stocks similar to Health Net, Inc. (NYSE:HNT). These stocks are Jacobs Engineering Group Inc (NYSE:JEC), Aluminum Corp. of China Limited (ADR) (NYSE:ACH), CubeSmart (NYSE:CUBE), and TransUnion (NYSE:TRU). This group of stocks’ market valuations match HNT’s market valuation.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $167 million, significantly below the $1.06 billion in HNT’s case. Jacobs Engineering Group Inc (NYSE:JEC) is the most popular stock in this table with a total of 26 funds reporting long positions. On the other hand Aluminum Corp. of China Limited (ADR) (NYSE:ACH) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Health Net, Inc. (NYSE:HNT) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.