Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Five Healthcare Stocks Hedge Funds Are Bullish On

Since the beginning of 2016, the healthcare sector has been one of the worst performing and is down by almost 8.80% year-to-date, outperforming only the financial sector that has registered declines of 9.90%. Nevertheless, smart money investors like healthcare stocks for their long-term growth and the over the past year the sector has also registered a wave of M&A activity, which is another reason for investing in healthcare companies. With the latest round of 13F filings completed, we have analyzed the equity portfolios of around 730 hedge funds and other institutional investors, whose activity we track as part of our small-cap strategy (see more details here). Aside from picking the stocks for our strategy, we can also see the collective sentiment among the funds from our database towards different stocks. Therefore, in this article, we are going to take a look at the top five healthcare stocks that the funds we track were bullish on heading into the first quarter of 2016.

Let’s start with Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA), which ranked on the fifth spot after it had registered a substantial increase in popularity during the last quarter of 2015. At the end of December, 81 funds reported long positions in Teva, worth $9.74 billion in aggregate, up from 70 funds holding $6.80 billion worth of stock a quarter earlier. In this way, the investors from our database amassed over 17% of the company’s stock at the end of last year. Year-to-date, Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA)’s shares have slid by more than 15%, but investors have something to look forward to in the long run, since the company is currently in the process of acquiring Allergan’s generic drugs business, following which Teva will become the largest manufacturer of generic drugs in the world. At the same time, at 9 times forward earnings, Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA)’s stock looks attractive and analysts seem to have the same view, since most outlets that cover the stock have set bullish ratings. Among the funds in our database, billionaire Andreas Halvorsen‘s Viking Global is the largest shareholder of Teva, owning 25.04 million shares.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.