Hedge Funds Are Betting Big On HMS Holdings Corp. (HMSY)

As industrywide interest jumped, key money managers were breaking ground themselves. Camber Capital Management initiated the most valuable position in HMS Holdings Corp. (NASDAQ:HMSY) during the quarter, becoming the largest holder of the stock among the funds we follow. Joel Greenblatt’s Gotham Asset Management also initiated a $10.2 million position during the quarter. The other funds with new positions in this stock are Israel Englander’s Millennium Management, D. E. Shaw’s D E Shaw, and Neil Chriss’s Hutchin Hill Capital.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as HMS Holdings Corp. (NASDAQ:HMSY) but similarly valued. We will take a look at Calavo Growers, Inc. (NASDAQ:CVGW), Lindsay Corporation (NYSE:LNN), Mitel Networks Corporation (NASDAQ:MITL), and Glaukos Corp (NYSE:GKOS). This group of stocks’ market values are closest to HMSY’s market value.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $75 million. That figure was $85 million in HMSY’s case, which is a positive sign. While Calavo Growers, Inc. (NASDAQ:CVGW) is the most popular stock in this table and Glaukos Corp (NYSE:GKOS) is the least popular one with only 6 bullish hedge fund positions, HMS Holdings Corp. (NASDAQ:HMSY) is way ahead of them all. 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.