Hedge Funds Are Selling DaVita HealthCare Partners Inc (NYSE:DVA)

DaVita HealthCare Partners Inc (NYSE:DVA) was in 31 hedge funds’ portfolio at the end of the fourth quarter of 2012. DVA has experienced a decrease in hedge fund sentiment in recent months. There were 34 hedge funds in our database with DVA holdings at the end of the previous quarter.

DaVita HealthCare Partners Inc (NYSE:DVA)

At the moment, there are dozens of methods market participants can use to watch the equity markets. A duo of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best hedge fund managers can outpace the broader indices by a very impressive margin (see just how much).

Just as beneficial, bullish insider trading activity is a second way to parse down the world of equities. There are a number of incentives for an insider to sell shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the impressive potential of this strategy if “monkeys” know where to look (learn more here).

With these “truths” under our belt, let’s take a glance at the latest action encompassing DaVita HealthCare Partners Inc (NYSE:DVA).

Hedge fund activity in DaVita HealthCare Partners Inc (NYSE:DVA)

At the end of the fourth quarter, a total of 31 of the hedge funds we track held long positions in this stock, a change of -9% from one quarter earlier. With the smart money’s capital changing hands, there exists a select group of notable hedge fund managers who were upping their stakes considerably.

Of the funds we track, Berkshire Hathaway, managed by Warren Buffett, holds the biggest position in DaVita HealthCare Partners Inc (NYSE:DVA). Berkshire Hathaway has a $1.504 billion position in the stock, comprising 2% of its 13F portfolio. Coming in second is Alan Fournier of Pennant Capital Management, with a $302 million position; the fund has 6.3% of its 13F portfolio invested in the stock. Remaining peers that are bullish include Andreas Halvorsen’s Viking Global, Stephen Mandel’s Lone Pine Capital and D. E. Shaw’s D E Shaw.

Since DaVita HealthCare Partners Inc (NYSE:DVA) has experienced declining sentiment from the entirety of the hedge funds we track, it’s safe to say that there exists a select few fund managers that elected to cut their entire stakes at the end of the year. Interestingly, SAC Subsidiary’s CR Intrinsic Investors said goodbye to the largest stake of the 450+ funds we key on, valued at about $10 million in stock., and Richard Schimel of Diamondback Capital was right behind this move, as the fund dumped about $10 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest fell by 3 funds at the end of the year.

Insider trading activity in DaVita HealthCare Partners Inc (NYSE:DVA)

Bullish insider trading is particularly usable when the company in question has seen transactions within the past half-year. Over the last half-year time frame, DaVita HealthCare Partners Inc (NYSE:DVA) has experienced 1 unique insiders purchasing, and 10 insider sales (see the details of insider trades here).

With the returns exhibited by the aforementioned research, everyday investors must always pay attention to hedge fund and insider trading activity, and DaVita HealthCare Partners Inc (NYSE:DVA) is an important part of this process.

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