Billionaire Cliff Asness is Selling These 5 Stocks in 2022

4. American Well Corporation (NYSE:AMWL)

Number of Hedge Fund Holders: 20

American Well Corporation (NYSE:AMWL) is a Massachusetts-based telehealth software company, providing urgent care, pediatrics, therapy, end-stage renal disease and dialysis, dermatology care, behavioral health therapy, and musculoskeletal care via its application. Billionaire Cliff Asness dumped his $191,000 stake in American Well Corporation (NYSE:AMWL) in Q1 2022. 

On May 16, Piper Sandler analyst Sean Wieland lowered the price target on American Well Corporation (NYSE:AMWL) to $5 from $7 and kept an Overweight rating on the stock. He trimmed his revenue growth and margin estimates after the company’s “mixed” Q1 results, but is encouraged by positive data points and commentary on Converge. The analyst is now modeling FY23 to FY25 “more conservatively” and still sees American Well Corporation (NYSE:AMWL) reaching adjusted EBITDA breakeven in the second half of FY25, in-line with the management’s goal.

According to Insider Monkey’s first quarter database, 20 hedge funds were bullish on American Well Corporation (NYSE:AMWL), compared to 23 funds in the preceding quarter. Richard Mashaal’s Rima Senvest Management is the biggest stakeholder of the company, with a position worth $32.2 million. 

Here is what Baron Funds has to say about American Well Corporation (NYSE:AMWL) in its Q2 2021 investor letter:

“We exited modest positions in American Well Corporation during the quarter. We think that this sale exemplifies the merits of maintaining small initial position sizes. We were initially excited by the long-term opportunities represented by the business and the valuations at which we were able to deploy capital. However, our ongoing and iterative due diligence efforts surfaced concerns regarding the sustainability of competitive advantages over our investment horizon. Additionally, we observed changes to incentive structures that potentially foreshadowed a future misalignment with shareholders. We were easily able to exit these modest positions and reallocate that capital to investments in which we have greater conviction that we believe offer more attractive risk-adjusted returns.”