Hedge Funds Double Down On Evolent Health Inc (EVH): What Did They Discover?

Consequently, key money managers have jumped into Evolent Health Inc (NYSE:EVH) headfirst. Alyeska Investment Group, led by Anand Parekh, assembled the most outsized position in Evolent Health Inc (NYSE:EVH). Alyeska Investment Group had $12.4 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $6.3 million investment in the stock during the quarter. The following funds were also among the new EVH investors: Jim Simons’ Renaissance Technologies, Benjamin A. Smith’s Laurion Capital Management, and Paul Marshall and Ian Wace’s Marshall Wace LLP.

Let’s also examine hedge fund activity in other stocks similar to Evolent Health Inc (NYSE:EVH). These stocks are Kaman Corporation (NYSE:KAMN), Central Garden & Pet Co (NASDAQ:CENT), MSG Networks Inc (NYSE:MSGN), and Express, Inc. (NYSE:EXPR). This group of stocks’ market values match EVH’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
KAMN 10 223224 1
CENT 21 114884 4
MSGN 24 324337 3
EXPR 26 162962 3

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 $206 million. That figure was $109 million in EVH’s case. Express, Inc. (NYSE:EXPR) is the most popular stock in this table. On the other hand Kaman Corporation (NYSE:KAMN) is the least popular one with only 10 bullish hedge fund positions. Evolent Health Inc (NYSE:EVH) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard EXPR might be a better candidate to consider taking a long position in.

Disclosure: None