Hedge Funds Are Buying WellCare Health Plans, Inc. (WCG)

As industrywide interest jumped, key hedge funds were breaking ground themselves. Redmile Group, managed by Jeremy Green, assembled the largest position in WellCare Health Plans, Inc. (NYSE:WCG). Redmile Group had $81.6 million invested in the company at the end of the quarter. Paul Sinclair’s Blue Jay Capital Management also made a $12.9 million investment in the stock during the quarter. The following funds were also among the new WCG investors: Samuel Isaly’s OrbiMed Advisors, Dmitry Balyasny’s Balyasny Asset Management, and Brad Farber’s Atika Capital.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as WellCare Health Plans, Inc. (NYSE:WCG) but similarly valued. We will take a look at Strategic Hotels and Resorts Inc (NYSE:BEE), Teradyne, Inc. (NYSE:TER), Syntel, Inc. (NASDAQ:SYNT), and Bank Of The Ozarks Inc (NASDAQ:OZRK). All of these stocks’ market caps match WCG’s market cap.

As you can see these stocks had an average of 21.5 hedge funds with bullish positions and the average amount invested in these stocks was $300 million. That figure was $725 million in WCG’s case. Strategic Hotels and Resorts Inc (NYSE:BEE) is the most popular stock in this table. On the other hand Bank Of The Ozarks Inc (NASDAQ:OZRK) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks WellCare Health Plans, Inc. (NYSE:WCG) 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.