David Abrams’ 2022 Portfolio: Top 5 Stock Picks

3. Change Healthcare Inc. (NASDAQ:CHNG)

Abrams Capital Management’s Stake Value: $370 million

Percentage of Abrams Capital Management’s 13F Portfolio: 8.63%

Number of Hedge Fund Holders: 50

Change Healthcare Inc. (NASDAQ:CHNG) provides payments and revenue cycle services, clinical and imaging services as well as patient and member engagement solutions.

On June 1, Citi analyst Daniel Grosslight raised his price target on Change Healthcare to $27.75, up from $25.75 and kept a Buy rating on the stock. The analyst said that the company’s fourth quarter results were better than expected and views the fiscal year 2023’s headwinds as temporary. Grosslight is appreciative of Change Healthcare’s risk/reward dynamic heading into this summer’s trial which is expected to determine UnitedHealth transaction’s fate.

Abrams Capital Management leads the 50 hedge funds invested in the company. The fund holds almost 17 million shares in the company as of the first quarter of 2022.