Is Universal Health Services, Inc. (UHS) A Good Stock To Buy?

Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track more than 700 prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile gigantic failures like hedge funds’ recent losses in Valeant. Let’s take a closer look at what the funds we track think about Universal Health Services, Inc. (NYSE:UHS) in this article.

Universal Health Services, Inc. (NYSE:UHS) was in 44 hedge funds’ portfolios at the end of the third quarter of 2015. UHS has seen a decrease in enthusiasm from smart money lately. There were 50 hedge funds in our database with UHS holdings at the end of the previous quarter. At the end of this article we will also compare UHS to other stocks including CarMax, Inc (NYSE:KMX), Akamai Technologies, Inc. (NASDAQ:AKAM), and Macerich Co (NYSE:MAC) to get a better sense of its popularity.

Now, we’re going to take a peek at the key action regarding Universal Health Services, Inc. (NYSE:UHS).

Hedge fund activity in Universal Health Services, Inc. (NYSE:UHS)

Heading into Q4, a total of 44 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -12% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Glenview Capital, managed by Larry Robbins, holds the biggest position in Universal Health Services, Inc. (NYSE:UHS). Glenview Capital has a $120.4 million position in the stock, comprising 0.6% of its 13F portfolio. Sitting at the No. 2 spot is Maverick Capital, managed by Lee Ainslie, which holds a $113.3 million position; the fund has 1.9% of its 13F portfolio invested in the stock. Other members of the smart money with similar optimism contain David Stemerman’s Conatus Capital Management, Israel Englander’s Millennium Management and Cliff Asness’s AQR Capital Management.