Here is Why Hedge Funds Are Betting On Kindred Healthcare, Inc. (NYSE:KND)

Keeping this in mind, we’re going to check out the key action surrounding Kindred Healthcare, Inc. (NYSE:KND).

Hedge fund activity in Kindred Healthcare, Inc. (NYSE:KND)

Heading into Q2, a total of 35 of the hedge funds tracked by Insider Monkey were long in this stock, a change of 3% from one quarter earlier. This is a very large number for a stock that has less than $2 billion in market cap. This is definitely a strong bullish sign.

When looking at the hedgies followed by Insider Monkey, Conan Laughlin’s North Tide Capital had the largest position in Kindred Healthcare, Inc. (NYSE:KND), worth close to $131.2 million, amounting to 9.9% of its total 13F portfolio. Sitting at the No. 2 spot is Ross Margolies of Stelliam Investment Management, with a $81.8 million position; 1.8% of its 13F portfolio is allocated to the stock. Some other hedge funds with similar optimism include Clint Carlson’s Carlson Capital, Arthur B Cohen and Joseph Healey’s Healthcor Management LP and Jacob Gottlieb’s Visium Asset Management.

As industrywide interest jumped, key money managers have jumped into Kindred Healthcare, Inc. (NYSE:KND) headfirst. Healthcor Management LP, managed by Arthur B Cohen and Joseph Healey, established the biggest new position in Kindred Healthcare, Inc. (NYSE:KND). Healthcor’s 46.6 million position at the end of the first quarter was also a new position. Joel Greenblatt’s Gotham Asset Management also initiated a $30.9 million position during the quarter. The other funds with brand new KND positions are Doug Gordon, Jon Hilsabeck and Don Jabro’s Shellback Capital, Sanford J. Colen’s Apex Capital, and Peter Muller’s PDT Partners.

Kindred shares declined by about 15% since the end of the first quarter. We think the stock is even more attractive now compared to April 23rd when Corsair Capital penned its investor letter. We believe Kindred shares are likely to outperform the market in the next 12 months.