Is Universal Health Services, Inc. (UHS) Worthy of Your Portfolio?

Since Universal Health Services, Inc. (NYSE:UHS) has witnessed bearish sentiment from the smart money, it’s easy to see that there is a sect of fund managers that elected to cut their positions entirely last quarter. Intriguingly, Israel Englander’s Millennium Management said goodbye to the biggest position of all the hedgies monitored by Insider Monkey, valued at about $63.1 million in stock. Christopher James’s fund, Partner Fund Management, also sold off its stock, valued at about $33.5 million.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Universal Health Services, Inc. (NYSE:UHS) but similarly valued. We will take a look at Ameren Corp (NYSE:AEE), Perrigo Company (NASDAQ:PRGO), Fidelity National Financial Inc (NYSE:FNF), and CMS Energy Corporation (NYSE:CMS). This group of stocks’ market values are similar to UHS’s market value.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $893 million. That figure was $1.64 million in UHS’s case. Fidelity National Financial Inc (NYSE:FNF) is the most popular stock in this table, while Ameren Corp (NYSE:AEE) is the least popular one with only 12 bullish hedge fund positions. Universal Health Services, Inc. (NYSE:UHS) 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, Fidelity National Financial Inc (NYSE:FNF) might be a better candidate to consider a long position.