WebMD Health Corp. (WBMD)’s Shares Are Trading Lower Following Private Placement Pricing

As aggregate interest increased, some big names have jumped into WebMD Health Corp. (NASDAQ:WBMD) headfirst. Steelhead Partners, managed by Michael Johnston, established the biggest position in WebMD Health Corp. (NASDAQ:WBMD). Steelhead Partners had $35.8 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $33.6 million investment in the stock during the quarter. The other funds with new positions in the stock are David Costen Haley’s HBK Investments, Nick Niell’s Arrowgrass Capital Partners, and D. E. Shaw’s D E Shaw.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as WebMD Health Corp. (NASDAQ:WBMD) but similarly valued. These stocks are Stantec Inc. (USA) (NYSE:STN), Boston Beer Co Inc (NYSE:SAM), Univar Inc (NYSE:UNVR), and Manchester United PLC (NYSE:MANU). This group of stocks’ market valuations resemble WBMD’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
STN 10 41063 3
SAM 17 281944 -5
UNVR 12 175044 0
MANU 9 94419 2

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $148 million. That figure was $558 million in WBMD’s case. Boston Beer Co Inc (NYSE:SAM) is the most popular stock in this table. On the other hand, Manchester United PLC (NYSE:MANU) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks WebMD Health Corp. (NASDAQ:WBMD) 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.

Disclosure: None