Deerfield Management Buys More And More Imprivata Inc. (IMPR) Shares

James E. Flynn’s Deerfield Management has filed a 13G with the U.S. Securities and Exchange Commission regarding its ownership of shares of Imprivata Inc. (NYSE:IMPR). The publicly-available filing discloses that the fund holds a 7.41% ownership stake in the company, holding 1.81 million shares. This is up by 782,500 shares from the position in the company that the fund reported holding in its  latest 13F filing for the reporting period of March 31.

James Flynn Deerfield Management

Deerfield Management is a New York-based healthcare-focused hedge fund founded in January 1994. James Flynn, the current Managing Partner of Deerfield, joined the firm in 2000 and has gradually taken more responsibility within the firm. James Flynn began co-managing Deerfield Management with the firm’s founder, Arnold Snider, beginning in 2004. However, the current Managing Partner of Deerfield took the reins of the firm upon the founder’s retirement in 2005. Deerfield is a non-activist, relationship-focused hedge fund launched with $17 million in equity and currently has more than $5 billion in assets under management. The investment firm’s entire team has a comprehensive understanding of the healthcare industry, which allows the firm to identify investment opportunities even when complex financial, legislative, and/or regulatory pressures are present. As stated by the fund’s latest 13F filing with the SEC, Deerfield Management oversees a public equity portfolio with a market value of $3.09 billion as of March 31.

James E. Flynn
James E. Flynn
Deerfield Management

In the eyes of most traders, hedge funds are assumed to be underperforming, old investment tools of the past. While there are more than 8000 funds in operation at present, Hedge fund experts at Insider Monkey look at the aristocrats of this group, around 700 funds. Contrary to popular belief Insider Monkey’s research revealed that hedge funds underperformed in recent years because of their short positions as well as the huge fees that they charge. Hedge funds managed to outperform the market on the long side of their portfolio. In fact, the 15 most popular small-cap stocks among hedge funds returned 123.1% since the end of August 2012 and beat the S&P 500 Index by 66 percentage points (see the details here). This is a huge margin which is why hedge funds’ recent Imprivata purchases is a strong indicator.

Imprivata Inc. (NYSE:IMPR) is a healthcare IT security company that provides authentication, access management, secure communications, and patient identification solutions for the healthcare industry. Put differently, Imprivata assists companies operating in the healthcare industry in improving the quality, efficiency, and manageability of the care they deliver. The shares of Imprivata are currently trading at an all-time high, gaining nearly 40% since the beginning of the current year. The strong performance delivered by the company this year can be attributed to its success in growing through both organic and inorganic expansion.