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Surgery Partners Inc (SGRY): Are Hedge Funds Right About This Stock?

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Reputable billionaire investors such as Nelson Peltz and David Tepper generate exorbitant profits for their wealthy accredited investors (a minimum of $1 million in investable assets would be required to invest in a hedge fund and most successful hedge funds won’t accept your savings unless you commit at least $5 million) by pinpointing winning small-cap stocks. There is little or no publicly-available information at all on some of these small companies, which makes it hard for an individual investor to pin down a winner within the small-cap space. However, hedge funds and other big asset managers can do the due diligence and analysis for you instead, thanks to their highly-skilled research teams and vast resources to conduct an appropriate evaluation process. Looking for potential winners within the small-cap galaxy of stocks? We believe following the smart money is a good starting point.

Is Surgery Partners Inc (NASDAQ:SGRY) a worthy investment right now? Money managers are surely selling. The number of bullish hedge fund bets suffered a reduction of 2 in recent months. There were 9 hedge funds in our database with SGRY positions at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Lannett Company, Inc. (NYSEAMEX:LCI), Array Biopharma Inc (NASDAQ:ARRY), and Red Rock Resorts Inc (NASDAQ:RRR) to gather more data points.

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Dmitry Kalinovsky/Shuteerstock.com

With all of this in mind, let’s go over the new action encompassing Surgery Partners Inc (NASDAQ:SGRY).

How are hedge funds trading Surgery Partners Inc (NASDAQ:SGRY)?

At the end of the third quarter, a total of 7 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -22% from the previous quarter. By comparison, 5 hedge funds held shares or bullish call options in SGRY heading into this year. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

HedgeFund

According to Insider Monkey’s hedge fund database, Adage Capital Management, led by Phill Gross and Robert Atchinson, holds the number one position in Surgery Partners Inc (NASDAQ:SGRY). Adage Capital Management has a $15.2 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Coming in second is John C. Walker of Stonerise Capital Management, with a $12.4 million position; 9.1% of its 13F portfolio is allocated to the company. Other members of the smart money with similar optimism comprise Israel Englander’s Millennium Management, one of the largest hedge funds in the world, James Dondero’s Highland Capital Management and Paul Marshall and Ian Wace’s Marshall Wace LLP. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.

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