In the 21st century investor’s toolkit, there are dozens of metrics investors can use to watch their holdings. Two of the best are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best investment managers can outpace the market by a very impressive margin (see just how much).
Just as necessary, optimistic insider trading activity is another way to look at the world of equities. Obviously, there are many motivations for an upper level exec to cut shares of his or her company, but only one, very simple reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the valuable potential of this tactic if investors understand where to look (learn more here).
Thus, let’s discuss the latest info about Tenet Healthcare Corp (NYSE:THC).
What does the smart money think about Tenet Healthcare Corp (NYSE:THC)?
In preparation for the third quarter, a total of 42 of the hedge funds we track held long positions in this stock, a change of 14% from the first quarter. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were boosting their stakes significantly.
Now, specific money managers were leading the bulls’ herd. Glenview Capital, managed by Larry Robbins, created the most valuable position in Tenet Healthcare Corp (NYSE:THC). Glenview Capital had 453.6 million invested in the company at the end of the quarter. Robert Pohly’s Samlyn Capital also initiated a $98.6 million position during the quarter. The following funds were also among the new THC investors: John Griffin’s Blue Ridge Capital, Daniel Gold’s QVT Financial, and Roberto Mignone’s Bridger Management.
How are insiders trading Tenet Healthcare Corp (NYSE:THC)?
Insider buying is at its handiest when the company in question has experienced transactions within the past 180 days. Over the latest six-month time frame, Tenet Healthcare Corp (NYSE:THC) has seen zero unique insiders buying, and 4 insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Tenet Healthcare Corp (NYSE:THC). These stocks are HCA Holdings Inc (NYSE:HCA), LifePoint Hospitals, Inc. (NASDAQ:LPNT), Health Management Associates Inc (NYSE:HMA), Universal Health Services, Inc. (NYSE:UHS), and Community Health Systems (NYSE:CYH). This group of stocks are the members of the hospitals industry and their market caps are closest to THC’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| HCA Holdings Inc (NYSE:HCA) | 63 | 0 | 15 |
| LifePoint Hospitals, Inc. (NASDAQ:LPNT) | 18 | 0 | 4 |
| Health Management Associates Inc (NYSE:HMA) | 27 | 0 | 1 |
| Universal Health Services, Inc. (NYSE:UHS) | 38 | 0 | 8 |
| Community Health Systems (NYSE:CYH) | 41 | 0 | 11 |
Using the returns demonstrated by the previously mentioned studies, regular investors must always track hedge fund and insider trading sentiment, and Tenet Healthcare Corp (NYSE:THC) is no exception.
