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Hedge Funds Were Opening Positions in These 5 Healthcare Stocks

3. Walgreens Boots Alliance Inc (NASDAQ:WBA)

Investors with Long Positions (as of June 30): 81

Aggregate Value of Investors’ Holdings (as of June 30): $9.13 Billion

Another healthcare stock that proved to be an irresistible one to hedge funds was Walgreens Boots Alliance Inc (NASDAQ:WBA), which is one of the largest drug store chains in the U.S., with stores in all 50 states. Going into the second quarter, 69 hedge funds out of the ones tracked by Insider Monkey were long in the stock, with $7.84 billion worth of shares. Walgreens Boots Alliance Inc (NASDAQ:WBA) recently announced a deal with Providence Health & Services to expand its activities in Washington and Oregon by opening 25 new in-store clinics in those states. The focus of the partnership is to provide quality healthcare and affordable prices to patients, although the in-store clinics will remain the property of Providence Health & Services. The company has been undergoing various restructuring processes, including recently laid off 370 employees in a bid to cut down on costs. Earlier this year, the company announced a strategic plan to close down up to 200 of its underperforming drugstores across different states as well. The move was part of the broader strategy, which aims to achieve a cost savings of $1.5 billion by the end of 2017. Out of the hedge funds tracked by Insider Monkey, Viking Global, run by billionaire Andreas Halvorsen, emerged as the biggest shareholder in our database at the end of the quarter. The fund held a total of 24.63 million shares with a market value of $2.08 billion.

2. Perrigo Company plc Ordinary Shares (NYSE:PRGO)

Investors with Long Positions (as of June 30): 83

Aggregate Value of Investors’ Holdings (as of June 30): $4.84 Billion

Perrigo Company plc Ordinary Shares (NYSE:PRGO) is another healthcare stock that attracted hedge funds during the second quarter. At the beginning of the quarter, there were only 37 hedge funds that were long in the stock out of the ones tracked by Insider Monkey. Aggregate investment also rose by 305.22% during the quarter, which was quite a bullish move by the smart money. Hedge funds’ sentiment on Perrigo Company plc Ordinary Shares (NYSE:PRGO) was right, as the stock’s performance was strong, gaining 11.65%, though that has not been the case in the third quarter, with it having lost 3.58% of its share price. The international manufacturer of over-the-counter pharmaceuticals recently announced a deal to acquire Naturwohl Pharma GmbH with Yokebe, the company’s leading German dietary supplement brand, which is expected to pull in around $470 million in net sales for the current financial year. York Capital Management, led by billionaire James Dinan, and OZ Management, headed by billionaire Daniel S. Och, were among the hedge funds that initiated positions in the stock during the second quarter.

1. HCA Holdings Inc (NYSE:HCA)

Investors with Long Positions (as of June 30): 83

Aggregate Value of Investors’ Holdings (as of June 30): $5.02 Billion

In conclusion, let’s have a look at HCA Holdings Inc (NYSE:HCA) in which the number of hedge funds with long positions rose from 69 and the aggregate ownership jumped from $3.68 billion. The company, which is the largest for-profit operator of healthcare facilities, carries out numerous activities through its subsidiaries such as HCA International, Columbia Hospital Corp, HCA United Kingdom Ltd, and PatientKeeper. Just like the hedge fund sentiment, HCA Holdings Inc (NYSE:HCA) share price leaped upwards by 20.59% during the second quarter and has gained 14.88% year-to-date. In its most recent financial earnings results, the company reported earnings per share of $1.37, beating analysts’ consensus estimate by $0.02, and representing an uptick of $0.50 compared to the same quarter from the year before. The increase can be attributed to increased admissions at its facilities, following the coming-into-effect of the Affordable Care Act. At the end of the quarter, Glenview Capital, managed by billionaire Larry Robbins, was also invested in the stock, owning 5.18 million shares with a market value of $469.80 million.

Disclosure: None

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