Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is Tenet Healthcare Corp (THC) A Good Stock To Buy?

Judging by the fact that Tenet Healthcare Corp (NYSE:THC) has witnessed falling interest from hedge fund managers, logic holds that there is a sect of hedgies who sold off their positions entirely last quarter. Interestingly, Glenn J. Krevlin’s Glenhill Advisors dropped the largest stake of the “upper crust” of funds monitored by Insider Monkey, valued at close to $35.9 million in stock, and Roberto Mignone’s Bridger Management was right behind this move, as the fund dropped about $25 million worth of stock. These bearish behaviors are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s check out hedge fund activity in other stocks similar to Tenet Healthcare Corp (NYSE:THC). These stocks are Inovalon Holdings Inc (NASDAQ:INOV), CoreSite Realty Corp (NYSE:COR), FireEye Inc (NASDAQ:FEYE), and J.C. Penney Company, Inc. (NYSE:JCP). This group of stocks’ market caps are similar to THC’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
INOV 4 2747 -2
COR 18 90393 0
FEYE 29 284327 2
JCP 32 459927 4

As you can see these stocks had an average of 20.75 hedge funds with bullish positions and the average amount invested in these stocks was $209 million. That figure was $759 million in THC’s case. J.C. Penney Company, Inc. (NYSE:JCP) is the most popular stock in this table. On the other hand Inovalon Holdings Inc (NASDAQ:INOV) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Tenet Healthcare Corp (NYSE:THC) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio despite the flat ownership likely brought about by sector fears which have since alleviated somewhat.

Disclosure: None

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
This is a FREE report from Insider Monkey. Credit Card is NOT required.