Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

How Did Hedge Funds’ Favourite Healthcare Stocks Perform during Q2?

Page 1 of 3

Healthcare stocks, along with food and drink-related securities, are usually recommended as defensive holdings for recessions and bear markets, as individuals have to eat, drink and take medicine even amid economic hardship. Even so, the U.S. healthcare sector has turned out to be much more than a simple defensive investment strategy.

For instance, the Health Care Select Sector SPDR Fund (XLV), the largest exchange-traded fund in the health care sector, has returned nearly 101% over the past five years, versus the 56% return of the S&P 500 Index over the same time span. Meanwhile, the health care sector is anticipated to report the second-highest revenue growth of all ten sectors within the S&P 500 gauge for the second quarter, with the top line growth expected to reach 7.7%. Having this in mind, let’s have a look at the performance of five healthcare stock favored by the hedge fund industry tracked by Insider Monkey, as well as discuss the most important events that affected the performance of each of the five companies to date.

At Insider Monkey, we track around 730 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details).

money, expensive, medical, examination, patient, business, concept, clinic, stethoscope, wealth, insurance, finance, dollar, disease, bank, treatment, sick, medicine,

Nataliia K/Shutterstock.com

#5. Walgreens Boots Alliance Inc. (NASDAQ:WBA)

– Investors with long positions as of March 31: 72

– Aggregate value of investors’ holdings as of March 31: $5.29 Billion

– Q2 Return: -0.7%

There were 72 hedge fund vehicles followed by Insider Monkey with long positions in Walgreens Boots Alliance Inc. (NASDAQ:WBA) at the end of the March quarter, as compared to 78 registered at the end of the previous quarter. The money managers invested in WBA hoarded up almost 6% of the company’s total number of outstanding shares. WBA shares were down a little less than 1% in the second quarter of 2016, partially owing to the United Kingdom’s decision to leave the European Union earlier this month. The global pharmacy-led health and wellbeing enterprise has significant exposure to the U.K. after Walgreens acquired Boots Alliance, the biggest drugstore chain on the island, several years ago. In late October 2015, WBA inked a deal to acquire the third-largest drugstore in the United States, Rite Aid Corporation (NYSE:RAD). The acquisition of the drugstore chain with 4,560 stores across 31 states and the District of Columbia is anticipated to close in the second half of this year. Barry Rosenstein’s JANA Partners owned 10.58 million shares of Walgreens Boots Alliance Inc. (NASDAQ:WBA) at the end of March.

Follow Walgreens Boots Alliance Inc. (NASDAQ:WBA)
Trade (NASDAQ:WBA) Now!

Page 1 of 3

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!