Many investors, including Carl Icahn or Stan Druckenmiller, have been saying for a while now that the current market is overvalued due to a low interest rate environment that leads to companies swapping their equity for debt and focusing mostly on short-term performance such as beating the quarterly earnings estimates.
In this article we will find out how hedge fund sentiment to Humana Inc (NYSE:HUM) changed recently.
Humana Inc (NYSE:HUM) investors should pay attention to an increase in activity from the world’s largest hedge funds in recent months. At the end of this article we will also compare HUM to other stocks, including Canadian Imperial Bank of Commerce (USA) (NYSE:CM), PG&E Corporation (NYSE:PCG), and Nokia Corporation (ADR) (NYSE:NOK) to get a better sense of its popularity.
In the financial world there are many signals market participants can use to assess publicly traded companies. Two of the most under-the-radar signals are hedge fund and insider trading moves. Our researchers have shown that, historically, those who follow the top picks of the best money managers can outpace the S&P 500 by a solid margin (see the details here).
Last year, Aetna agreed to acquire Humana in a move that is expected to consolidate the healthcare plans industry. One of the funds that was betting on the merger is billionaire Larry Robbins’ Glenview Capital, which discussed the transaction in its third-quarter letter to investors. Read on to see Glenview’s comments: