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|
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.