How HealthSouth Corp (HLS) Stacks Up Against Its Peers

Due to the fact that HealthSouth Corp (NYSE:HLS) has witnessed bearish sentiment from the aggregate hedge fund industry, logic holds that there were a few fund managers that decided to sell off their entire stakes last quarter. At the top of the heap, Patrick Hughes and Loren Katzovitz’s Deimos Asset Management dropped the largest position of the “upper crust” of funds tracked by Insider Monkey, valued at about $1.2 million in stock. George Hall’s fund, Clinton Group, also dropped its stock, about $0.7 million worth. These moves are important to note, as total hedge fund interest fell by 3 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as HealthSouth Corp (NYSE:HLS) but similarly valued. We will take a look at Leidos Holdings Inc (NYSE:LDOS), ONE Gas Inc (NYSE:OGS), Endo Health Solutions Inc (NASDAQ:ENDP), and First Niagara Financial Group Inc. (NASDAQ:FNFG). This group of stocks’ market valuations are closest to HLS’s market valuation.

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $377 million. That figure was $543 million in HLS’s case. Endo Health Solutions Inc (NASDAQ:ENDP) is the most popular stock in this table. On the other hand First Niagara Financial Group Inc. (NASDAQ:FNFG) is the least popular one with only 1 bullish hedge fund positions. HealthSouth Corp (NYSE:HLS) 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 ENDP might be a better candidate to consider a long position in.

Disclosure: None