Newest Plays for Billion-Dollar Bridger Management

Healthcare service provider Centene Corporation (NYSE:CNC) snatched up 1.21% of Bridger’s assets, and the fund has seen a modest performance during their small ownership, despite a dip in share price in mid-October of 2012. The stock posted a negative gain in the prior 52-weeks and was hit with a downgrade by investment bank Jeffries in late December. Earnings dipped into negative territory last year but have recovered since then, and estimates for their next reported announcement (due out the fifth of February) are in line with the previous quarter at $0.33. While we recognize the upside, CNC might be too volatile with their checkered earnings past to be a significant play in our eyes (see which billion-dollar fund manager cut his position down by 60%).

Endologix, Inc. (NASDAQ:ELGX) was another healthcare play by Mignone, with this company’s focus being in the production of medical devices to alleviate heart disorders. Placing much more emphasis on future potential than past performance, sell-side analysts have ignored a full year of negative earnings in 2012 (as well as negative estimated earnings for the coming quarter, still to be reported). In spite of this, bullish sentiments prevail, with significant upgrades and buy recommendations flowing in since the middle of last year. Future growth ratios are skewed to the negative, but ELGX is expected to gain almost 13% from present prices if they reach our price expectations a year out.

Disclosure: I do not own shares of any stocks mentioned in this article.