Tamarack Capital Management’s Ariad Pharmaceuticals, Inc. (ARIA) Holding Carries It To Strong Q3 Gains

Let’s take a gander now at how Tamarack traded Quest Diagnostics Inc (NYSE:DGX) in recent quarters and how the position performed for the fund. The fund’s second-most valuable holding on March 31, Tamarack slashed its position in the stock by 49% during the second quarter, to 183,457 shares with a value of $14.93 million. As the stock was returning 5% during the third quarter, the fund sold out of nearly all of its remaining position, offloading 95% of its holding, leaving it with just 8,557 shares.

Other smart money managers were also reducing their bets on the stock in the second quarter, as the number of bullish hedge fund positions was trimmed by 4 to 25 as of June 30. The largest stake in Quest Diagnostics Inc (NYSE:DGX) on June 30 among those 25 funds was held by AQR Capital Management, which reported holding $126.3 million worth of stock. It was followed by Healthcor Management LP with a $93.6 million position. Other investors bullish on the company included Marshall Wace LLP, Ariel Investments, and Citadel Investment Group.

Lastly, let’s take a peek at the key hedge fund action regarding Medtronic, Inc. (NYSE:MDT). Tamarack also cut its position in this health stock during the second quarter, by 32% to 169,000 shares valued at $14.66 million. Shares were flat during the third quarter, during which time the fund sold off another 31% of its position, leaving it with 115,000 shares.

At Q2’s end, a total of 50 of the hedge funds tracked by Insider Monkey were bullish on this stock, a 6% increase quarter-over-quarter, ranking it as one of the more popular healthcare stocks. When looking at the institutional investors followed by Insider Monkey, Ric Dillon’s Diamond Hill Capital has the largest position in Medtronic, Inc. (NYSE:MDT), worth close to $214.3 million. The second most bullish fund manager is Adage Capital Management, managed by Phill Gross and Robert Atchinson, which holds a $153.7 million position. Some other members of the smart money that hold long positions consist of Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Jean-Marie Eveillard’s First Eagle Investment Management.

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