Is WebMD Health Corp. (WBMD) A Good Stock To Buy?

With general bullishness amongst the heavyweights, specific money managers were leading the bulls’ herd. Shannon River Fund Management created the biggest position in WebMD Health Corp. (NASDAQ:WBMD). Hillhouse Capital Management also initiated a $22.6 million position during the quarter. The following funds were also among the new WBMD investors: Joshua Nash’s Ulysses Management, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Neil Chriss’ Hutchin Hill Capital.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as WebMD Health Corp. (NASDAQ:WBMD) but similarly valued. These stocks are Cepheid (NASDAQ:CPHD), New Gold Inc. (USA) (NYSEAMEX:NGD), Visteon Corp (NYSE:VC), and Laredo Petroleum Holdings Inc (NYSE:LPI). This group of stocks’ market caps are closest to WBMD’s market cap.

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 $419 million. That figure was $469 million in WBMD’s case. Cepheid (NASDAQ:CPHD) is the most popular stock in this table. On the other hand New Gold Inc. (USA) (NYSEAMEX:NGD) is the least popular one with only 15 bullish hedge fund positions. WebMD Health Corp. (NASDAQ:WBMD) 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 CPHD looked like a better candidate to consider a long position in, but as it’s no longer trading, WBMD is the most promising stock among those above, with strong recent sentiment.

Disclosure: None