Hedge Funds Have Bought WebMD Health Corp. (WBMD), VIVUS, Inc. (VVUS), and More

Generation Investment Management, managed by David Blood and Al Gore, reported a position of 4.4 million shares in Henry Schein, Inc. (NASDAQ:HSIC), a $9 billion market cap medical equipment company. Research more stocks Generation owns. Henry Schein, Inc. (NASDAQ:HSIC) grew its revenue by 9% in Q1 2013 versus a year earlier, with growth being led by the animal health segment. However, if we add back some restructuring charges the company took in the prior year period we see little change in pretax income, showing that cost growth is eating up nearly all this increase. At 23 times trailing earnings the stock doesn’t seem attractive on a value basis.

Blount International Inc (NYSE:BLT) is another stock seeing hedge fund buying with Claus Moller’s P2 Capital Partners increasing its stake to over 10% of the company (check out more stocks in Moller’s portfolio). Blount International Inc (NYSE:BLT) provides forestry, lawn, and garden equipment. Analysts see it as a potentially undervalued company, with the stock trading at only 11 times forward earnings estimates and at a five-year PEG ratio of 0.9. Profits rose strongly in its last quarterly report compared to the first quarter of 2012, though revenue growth was more modest and so we’d expect earnings growth to be in the single digits as well going forward.

PAR Capital Management added shares of POZEN Inc. (NASDAQ:POZN) and at 3.4 million shares now owns over 10% of the company. POZEN Inc. (NASDAQ:POZN) is a $170 million market cap drug developer (on average over 200,000 shares are traded per day, so at the current price of $5.50 there is over $1 million in daily dollar volume) focused on treatments for pain. The sell-side expects the company to begin bringing in profits next year, with two forward estimates averaging out to 22 cents per share (or a forward P/E of 25). Markets have actually been somewhat skeptical of the company with the stock price falling 14% in the last year.

Disclosure: I own no shares of any stocks mentioned in this article.