Adeptus Health Inc (ADPT) More Than Doubles on Wexford Stake

Adeptus Health Inc (NYSE:ADPT) shares more than doubled on Wednesday after entities associated with Wexford Capital disclosed a 1.4 million share position, or around 8.4% stake, in the freestanding emergency room operator. Given that Wexford has substantial experience in distressed securities, some in the market evidently think there might be value in Adeptus if management can turn around the company’s fundamentals. Given that sentiment surrounding Adeptus Health Inc (NYSE:ADPT) has been very negative and around 72% of the company’s float is short, a short squeeze also likely played a major part in Wednesday’s surge. Whether or not Adeptus Health can deliver value in the long term for shareholders is anyone’s guess, however.

What Does The Smart Money Sentiment Say?

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).

In terms of aggregate smart money data, 12 top funds owned shares of Adeptus Health Inc (NYSE:ADPT) at the end of December, down just one from the previous quarter. Those numbers are out of the 742 smart money funds that Insider Monkey tracks.

The Bottom Line

Adeptus Health Inc (NYSE:ADPT) shares more than doubled due to the news that Wexford Capital initiated a 1.4 million position in the company. For more reading, check out ‘11 Richest Doctors In The World‘.