IMS Health Holdings Inc (IMS): Are Hedge Funds Right About This Stock?

Because IMS Health Holdings Inc (NYSE:IMS) has gone through falling interest from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of funds that decided to sell off their entire stakes last quarter. Interestingly, Richard Driehaus’ Driehaus Capital dumped the biggest investment of the 700 funds followed by Insider Monkey, valued at an estimated $6.7 million in call options, and Jeff Lignelli’s Incline Global Management was right behind this move, as the fund cut about $6.6 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as IMS Health Holdings Inc (NYSE:IMS) but similarly valued. These stocks are Atmos Energy Corporation (NYSE:ATO), IDEXX Laboratories, Inc. (NASDAQ:IDXX), The Cooper Companies, Inc. (NYSE:COO), and The WhiteWave Foods Co (NYSE:WWAV). All of these stocks’ market caps match IMS’s market cap.

As you can see these stocks had an average of 25 funds with bullish positions and the average amount invested in these stocks was $768 million. That figure was $1.23 billion in IMS’s case. The WhiteWave Foods Co (NYSE:WWAV) is the most popular stock in this table. On the other hand, Atmos Energy Corporation (NYSE:ATO) is the least popular one with only 12 investors holding shares. IMS Health Holdings Inc (NYSE:IMS) 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 The WhiteWave Foods Co (NYSE:WWAV) might be a better candidate to consider taking a long position in.