A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended June 30th, so let’s proceed with the discussion of the hedge fund sentiment on Health Catalyst, Inc (NASDAQ:HCAT).
Is Health Catalyst, Inc (NASDAQ:HCAT) a great investment right now? Hedge funds were becoming hopeful. The number of long hedge fund bets improved by 2 in recent months. Health Catalyst, Inc (NASDAQ:HCAT) was in 22 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 21. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that HCAT isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
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Henrik Rhenman of Rhenman & Partners Asset Management
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Do Hedge Funds Think HCAT Is A Good Stock To Buy Now?
Heading into the third quarter of 2021, a total of 22 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 10% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in HCAT over the last 24 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Rock Springs Capital Management was the largest shareholder of Health Catalyst, Inc (NASDAQ:HCAT), with a stake worth $43.6 million reported as of the end of June. Trailing Rock Springs Capital Management was Perceptive Advisors, which amassed a stake valued at $31.4 million. Rhenman & Partners Asset Management, Impax Asset Management, and Point72 Asset Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Rhenman & Partners Asset Management allocated the biggest weight to Health Catalyst, Inc (NASDAQ:HCAT), around 0.9% of its 13F portfolio. Rock Springs Capital Management is also relatively very bullish on the stock, setting aside 0.86 percent of its 13F equity portfolio to HCAT.
As one would reasonably expect, key hedge funds have jumped into Health Catalyst, Inc (NASDAQ:HCAT) headfirst. Point72 Asset Management, managed by Steve Cohen, created the largest position in Health Catalyst, Inc (NASDAQ:HCAT). Point72 Asset Management had $10.9 million invested in the company at the end of the quarter. Ray Dalio’s Bridgewater Associates also initiated a $4.5 million position during the quarter. The other funds with new positions in the stock are Paul Tudor Jones’s Tudor Investment Corp, Bruce Kovner’s Caxton Associates LP, and Brandon Haley’s Holocene Advisors.
Let’s now review hedge fund activity in other stocks similar to Health Catalyst, Inc (NASDAQ:HCAT). These stocks are AeroVironment, Inc. (NASDAQ:AVAV), Magellan Health Inc (NASDAQ:MGLN), Retail Properties of America Inc (NYSE:RPAI), Boot Barn Holdings Inc (NYSE:BOOT), Federal Signal Corporation (NYSE:FSS), FibroGen Inc (NASDAQ:FGEN), and Forward Air Corporation (NASDAQ:FWRD). This group of stocks’ market values are closest to HCAT’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AVAV | 20 | 100604 | 4 |
| MGLN | 26 | 828067 | 2 |
| RPAI | 16 | 40374 | 7 |
| BOOT | 29 | 217618 | 11 |
| FSS | 13 | 46834 | 0 |
| FGEN | 17 | 192268 | -1 |
| FWRD | 19 | 318287 | 6 |
| Average | 20 | 249150 | 4.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $249 million. That figure was $171 million in HCAT’s case. Boot Barn Holdings Inc (NYSE:BOOT) is the most popular stock in this table. On the other hand Federal Signal Corporation (NYSE:FSS) is the least popular one with only 13 bullish hedge fund positions. Health Catalyst, Inc (NASDAQ:HCAT) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for HCAT is 65.1. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24% in 2021 through October 22nd and beat the market again by 1.6 percentage points. Unfortunately HCAT wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on HCAT were disappointed as the stock returned -8.3% since the end of June (through 10/22) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
Follow Health Catalyst Inc. (NASDAQ:HCAT)
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Disclosure: None. This article was originally published at Insider Monkey.
