HealthCor Management Likes These 5 Healthcare Stocks Amid Sector Turbulence

#3 Stericycle Inc (NASDAQ:SRCL)

 – Shares held (as of September 30): 775,000

 – Total Value (as of September 30): $107.97 million

A new stake in Stericycle represented about 6.08% of HealthCor’s public equity portfolio on September 30. HealthCor’s bullishness was just the tip of the positive sentiment iceberg, as there was overwhelming enthusiasm for the company in the third quarter among the hedge funds that we track. At the end of September a total of 34 firms had investments worth $413.25 million in the company, compared to 18 firms with $129.88 million in shares at the end of June. However, Stericycle Inc (NASDAQ:SRCL)’s stock tanked by more than 18% in October when the company failed to meet its guidance for the third quarter. The main issues being foreign exchange losses, lower hazardous-waste volumes, and higher-than-expected expenses. Impax Asset Management, which is managed by Ian Simm, owns about 313,400 shares of Stericycle Inc (NASDAQ:SRCL).

#2 Edwards Lifesciences Corp (NYSE:EW)

 – Shares held (as of September 30): 775,000

 – Total Value (as of September 30): $110.18 million

HealthCor slashed its stake in the $16.98 billion medical device company focused on heart valve therapies by 29% during the third trimester. The stock has climbed by more than 5% since the end of September and is up by nearly 24% so far this year. In its financial results for the third quarter, Edwards Lifesciences Corp (NYSE:EW) reported EPS of $1.07, which was $0.09 higher than analyst estimates, while quarterly revenue of $615.5 million also came in $17.21 million higher than expectations. Ken Griffin‘s Citadel Investment Group tops our list of Edwards Lifesciences Corp (NYSE:EW)’s stockholders, as it owns about 2.22 million shares of the company.

#1 Allergan PLC (NYSE:AGN)

 – Shares held (as of September 30): 475,000

 – Total Value (as of September 30): $129.11 million

During the September quarter, HealthCor bulked up its Allergan position by adding some 447,500 shares to it. Formerly known as Actavis, the Irish-domiciled, ‘acquisition-happy’ company is seeking to create attractive long-term assets while minimizing the risky R&D spend that is ubiquitous in the healthcare sector, according to one of Dan Loeb’s investor letters earlier this year. Allergan PLC (NYSE:AGN) has continued on this trajectory in a big way, as it recently announced its $160 billion merger with Pfizer Inc. (NYSE:PFE), which stands as the largest transaction ever in the healthcare sector, and the second-biggest deal of all time. Richard Gerson and Navroz D. Udwadia’s Falcon Edge Capital hiked its stake in Allergan PLC (NYSE:AGN) to about 592,500 shares in the third quarter.

Disclosure: None