What’s a smart eHealth, Inc. (NASDAQ:EHTH) investor to do?
If you were to ask many investors, hedge funds are perceived as overrated, old investment vehicles of a period lost to current times. Although there are more than 8,000 hedge funds trading in present day, this site aim at the aristocrats of this club, close to 525 funds. Analysts calculate that this group has its hands on most of the hedge fund industry’s total capital, and by paying attention to their highest quality investments, we’ve formulated a number of investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).
Equally as useful, optimistic insider trading sentiment is another way to look at the marketplace. Obviously, there are lots of stimuli for an upper level exec to cut shares of his or her company, but only one, very obvious reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this tactic if shareholders understand what to do (learn more here).
Now that that’s out of the way, it’s important to examine the recent info for eHealth, Inc. (NASDAQ:EHTH).
What have hedge funds been doing with eHealth, Inc. (NASDAQ:EHTH)?
At Q2’s end, a total of 11 of the hedge funds we track were bullish in this stock, a change of -8% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were upping their stakes substantially.
When using filings from the hedgies we track, Arthur B Cohen and Joseph Healey’s Healthcor Management LP had the most valuable position in eHealth, Inc. (NASDAQ:EHTH), worth close to $51.2 million, accounting for 3.1% of its total 13F portfolio. On Healthcor Management LP’s heels is Kendall Square Capital, managed by Jason F. Harris, which held a $7.1 million position; 4.2% of its 13F portfolio is allocated to the company. Some other hedge funds with similar optimism include Jim Simons’s Renaissance Technologies, Israel Englander’s Millennium Management and D. E. Shaw’s D E Shaw.
Since eHealth, Inc. (NASDAQ:EHTH) has faced bearish sentiment from the top-tier hedge fund industry, it’s easy to see that there were a few fund managers who sold off their full holdings last quarter. It’s worth mentioning that Ryan Schaper’s Point Lobos Capital sold off the largest position of the 450+ funds we key on, comprising an estimated $4.4 million in stock, and James E. Flynn of Deerfield Management was right behind this move, as the fund cut about $3.5 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 1 funds last quarter.
How are insiders trading eHealth, Inc. (NASDAQ:EHTH)?
Insider buying is at its handiest when the primary stock in question has experienced transactions within the past 180 days. Over the last six-month time period, eHealth, Inc. (NASDAQ:EHTH) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Using the returns explained by our strategies, regular investors should always pay attention to hedge fund and insider trading activity, and eHealth, Inc. (NASDAQ:EHTH) shareholders fit into this picture quite nicely.