Is DaVita HealthCare Partners Inc (DVA) A Good Stock To Buy?

Since DaVita HealthCare Partners Inc (NYSE:DVA) has witnessed falling interest from the smart money, logic holds that there is a sect of fund managers who sold off their entire stakes heading into Q4. Interestingly, Glenn Russell Dubin’s Highbridge Capital Management cut the biggest investment of all the hedgies followed by Insider Monkey, worth close to $22.2 million in stock. Matthew Tewksbury’s fund, Stevens Capital Management, also cut its stock, about $12.6 million worth. These transactions are interesting, as aggregate hedge fund interest fell by 5 funds heading into Q4.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as DaVita HealthCare Partners Inc (NYSE:DVA) but similarly valued. These stocks are Equinix Inc (NASDAQ:EQIX), Level 3 Communications, Inc. (NYSE:LVLT), Telefonica Brasil SA (ADR) (NYSE:VIV), and AEGON N.V. (ADR) (NYSE:AEG). All of these stocks’ market caps are similar to DVA’s market cap.

As you can see these stocks had an average of 24 hedge funds with bullish positions and the average amount invested in these stocks was $1639 million. That figure was $4826 million in DVA’s case. Equinix Inc (NASDAQ:EQIX) is the most popular stock in this table. On the other hand AEGON N.V. (ADR) (NYSE:AEG) is the least popular one with only 6 bullish hedge fund positions. DaVita HealthCare Partners Inc (NYSE:DVA) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard EQIX might be a better candidate to consider a long position.