Surgery Partners Inc (SGRY): Are Hedge Funds Right About This Stock?

Judging by the fact that Surgery Partners Inc (NASDAQ:SGRY) has weathered bearish sentiment from the entirety of the hedge funds we track, logic holds that there is a sect of hedge funds that elected to cut their positions entirely last quarter. Intriguingly, Ken Heebner’s Capital Growth Management dumped the biggest stake of all the hedgies monitored by Insider Monkey, totaling close to $1.6 million in stock. Steve Cohen’s fund, Point72 Asset Management, also dumped its stock, about $1.5 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Surgery Partners Inc (NASDAQ:SGRY) but similarly valued. These stocks are Lannett Company, Inc. (NYSEAMEX:LCI), Array Biopharma Inc (NASDAQ:ARRY), Red Rock Resorts Inc (NASDAQ:RRR), and CIRCOR International, Inc. (NYSE:CIR). This group of stocks’ market values are closest to SGRY’s market value.

As you can see these stocks had an average of 18.5 hedge funds with bullish positions and the average amount invested in these stocks was $209 million. That figure was $39 million in SGRY’s case. Array Biopharma Inc (NASDAQ:ARRY) is the most popular stock in this table. On the other hand CIRCOR International, Inc. (NYSE:CIR) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Surgery Partners Inc (NASDAQ:SGRY) is even less popular than CIR. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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