At the moment, there are dozens of indicators investors can use to analyze Mr. Market. Two of the most useful are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best money managers can beat the S&P 500 by a solid margin (see just how much).
Equally as useful, optimistic insider trading activity is another way to look at the financial markets. As the old adage goes: there are lots of motivations for an insider to get rid of shares of his or her company, but just one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the valuable potential of this tactic if "monkeys" know what to do (learn more here).
Now that that's out of the way, let's discuss the newest info surrounding Health Management Associates Inc (NYSE:HMA).
At the end of the second quarter, a total of 27 of the hedge funds we track were long in this stock, a change of 29% from one quarter earlier. With hedgies' sentiment swirling, there exists a select group of notable hedge fund managers who were upping their stakes considerably.
When using filings from the hedgies we track, Glenview Capital, managed by Larry Robbins, holds the most valuable position in Health Management Associates Inc (NYSE:HMA). Glenview Capital has a $593.5 million position in the stock, comprising 5.4% of its 13F portfolio. Coming in second is JANA Partners, managed by Barry Rosenstein, which held a $305.8 million position; the fund has 4.3% of its 13F portfolio invested in the stock. Remaining hedgies that hold long positions include Kenneth Mario Garschina's Mason Capital Management, Keith Meister's Corvex Capital and Christopher Medlock James's Partner Fund Management.
Now, specific money managers have been driving this bullishness. Glenview Capital, managed by Larry Robbins, initiated the most valuable position in Health Management Associates Inc (NYSE:HMA). Glenview Capital had 593.5 million invested in the company at the end of the quarter. Barry Rosenstein's JANA Partners also made a $305.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Kenneth Mario Garschina's Mason Capital Management, Keith Meister's Corvex Capital, and Christopher Medlock James's Partner Fund Management.
Legal insider trading, particularly when it's bullish, is most useful when the company in focus has seen transactions within the past six months. Over the last six-month time frame, Health Management Associates Inc (NYSE:HMA) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We'll also take a look at the relationship between both of these indicators in other stocks similar to Health Management Associates Inc (NYSE:HMA). These stocks are Select Medical Holdings Corporation (NYSE:SEM), Universal Health Services, Inc. (NYSE:UHS), Tenet Healthcare Corp (NYSE:THC), LifePoint Hospitals, Inc. (NASDAQ:LPNT), and Community Health Systems (NYSE:CYH). This group of stocks are the members of the hospitals industry and their market caps are similar to HMA's market cap.