LifePoint Health Inc (LPNT): Are Hedge Funds Right About This Stock?

Since LifePoint Health Inc (NASDAQ:LPNT) has encountered declining sentiment from the aggregate hedge fund industry, logic holds that there was a specific group of hedge funds that slashed their entire stakes in the third quarter. At the top of the heap, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital dumped the largest stake of all the investors monitored by Insider Monkey, comprising an estimated $16.4 million in stock. Anders Hallberg and Carl Bennet’s fund, HealthInvest Partners AB, also dropped its stock, about $12.1 million worth.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as LifePoint Health Inc (NASDAQ:LPNT) but similarly valued. We will take a look at Sinclair Broadcast Group, Inc. (NASDAQ:SBGI), Nabors Industries Ltd. (NYSE:NBR), Avista Corp (NYSE:AVA), and China Biologic Products Inc (NASDAQ:CBPO). This group of stocks’ market valuations match LPNT’s market valuation.

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 $253 million. That figure was $192 million in LPNT’s case. Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) is the most popular stock in this table. On the other hand Avista Corp (NYSE:AVA) is the least popular one with only 9 bullish hedge fund positions. LifePoint Health Inc (NASDAQ:LPNT) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard SBGI might be a better candidate to consider taking a long position in.

Disclosure: None