Envision Healthcare Holdings Inc (EVHC): Are Hedge Funds Right About This Stock?

As one would reasonably expect, key money managers have jumped into Envision Healthcare Holdings Inc (NYSE:EVHC) headfirst. Stevens Capital Management, managed by Matthew Tewksbury, initiated the largest position in Envision Healthcare Holdings Inc (NYSE:EVHC). Stevens Capital Management had $2.8 million invested in the company at the end of the quarter. Chao Ku’s Nine Chapters Capital Management also made a $2.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Michael Platt and William Reeves’s BlueCrest Capital Mgmt., Phil Frohlich’s Prescott Group Capital Management, and Richard Driehaus’ Driehaus Capital.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Envision Healthcare Holdings Inc (NYSE:EVHC) but similarly valued. These stocks are Harman International Industries Inc./DE/ (NYSE:HAR), IDEXX Laboratories, Inc. (NASDAQ:IDXX), KT Corporation (ADR) (NYSE:KT), and Ashland Inc. (NYSE:ASH). All of these stocks’ market caps are similar to EVHC’s market cap.

As you can see these stocks had an average of 24.5 hedge funds with bullish positions and the average amount invested in these stocks was $452 million. That figure was $1194 million in EVHC’s case. Ashland Inc. (NYSE:ASH) is the most popular stock in this table. On the other hand KT Corporation (ADR) (NYSE:KT) is the least popular one with only 9 bullish hedge fund positions. Envision Healthcare Holdings Inc (NYSE:EVHC) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ASH might be a better candidate to consider a long position.