Is HEALTHSOUTH Corp. (NYSE:HLS) the right investment to pursue these days? The best stock pickers are in a bearish mood. The number of long hedge fund positions fell by 2 recently.
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Now, let’s take a gander at the key action regarding HEALTHSOUTH Corp. (NYSE:HLS).
What have hedge funds been doing with HEALTHSOUTH Corp. (NYSE:HLS)?
At year’s end, a total of 21 of the hedge funds we track were bullish in this stock, a change of -9% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their stakes meaningfully.
Of the funds we track, Osterweis Capital Management, managed by John Osterweis, holds the biggest position in HEALTHSOUTH Corp. (NYSE:HLS). Osterweis Capital Management has a $63 million position in the stock, comprising 2.8% of its 13F portfolio. Coming in second is Mariko Gordon of Daruma Asset Management, with a $51 million position; 0.2% of its 13F portfolio is allocated to the stock. Remaining hedgies that hold long positions include Chuck Royce’s Royce & Associates, Jeffrey Edwards’s East Peak Partners and D. E. Shaw’s D E Shaw.
Seeing as HEALTHSOUTH Corp. (NYSE:HLS) has faced a declination in interest from the smart money, logic holds that there were a few funds who sold off their entire stakes in Q4. Interestingly, James Dondero’s Highland Capital Management sold off the biggest position of the “upper crust” of funds we monitor, valued at close to $8 million in stock., and Dmitry Balyasny of Balyasny Asset Management was right behind this move, as the fund dropped about $7 million worth. These bearish behaviors are interesting, as total hedge fund interest was cut by 2 funds in Q4.
What have insiders been doing with HEALTHSOUTH Corp. (NYSE:HLS)?
Insider buying is most useful when the company we’re looking at has experienced transactions within the past six months. Over the last 180-day time period, HEALTHSOUTH Corp. (NYSE:HLS) has seen 1 unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the returns exhibited by the aforementioned tactics, retail investors must always keep an eye on hedge fund and insider trading sentiment, and HEALTHSOUTH Corp. (NYSE:HLS) shareholders fit into this picture quite nicely.
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