Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) investors: listen up.
In the eyes of many investors, hedge funds are viewed as useless, outdated financial tools of a period lost to current times. Although there are more than 8,000 hedge funds in operation today, Insider Monkey focuses on the aristocrats of this club, about 525 funds. It is widely held that this group controls most of the hedge fund industry’s total capital, and by monitoring their best investments, we’ve unsheathed a few investment strategies that have historically outstripped the S&P 500. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 33 percentage points in 11 months (find the details here).
Equally as crucial, bullish insider trading activity is a second way to analyze the investments you’re interested in. There are plenty of stimuli for an executive to downsize shares of his or her company, but just one, very clear reason why they would buy. Plenty of empirical studies have demonstrated the valuable potential of this strategy if “monkeys” know what to do (learn more here).
What’s more, let’s discuss the latest info about Allscripts Healthcare Solutions Inc (NASDAQ:MDRX).
Hedge fund activity in Allscripts Healthcare Solutions Inc (NASDAQ:MDRX)
At the end of the second quarter, a total of 33 of the hedge funds we track held long positions in this stock, a change of 22% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were upping their holdings significantly.
Out of the hedge funds we follow, Arthur B Cohen and Joseph Healey’s Healthcor Management LP had the most valuable position in Allscripts Healthcare Solutions Inc (NASDAQ:MDRX), worth close to $192.8 million, accounting for 11.7% of its total 13F portfolio. The second largest stake is held by Blue Harbour Group, managed by Clifton S. Robbins, which held a $93.4 million position; 7.1% of its 13F portfolio is allocated to the company. Other peers that hold long positions include Ricky Sandler’s Eminence Capital, Andrew J. M. Spokes’s Farallon Capital and Phill Gross and Robert Atchinson’s Adage Capital Management.
As industrywide interest increased, certain money managers have been driving this bullishness. Healthcor Management LP, managed by Arthur B Cohen and Joseph Healey, established the most valuable position in Allscripts Healthcare Solutions Inc (NASDAQ:MDRX). Healthcor Management LP had 192.8 million invested in the company at the end of the quarter. Clifton S. Robbins’s Blue Harbour Group also made a $93.4 million investment in the stock during the quarter. The following funds were also among the new MDRX investors: Ricky Sandler’s Eminence Capital, Andrew J. M. Spokes’s Farallon Capital, and Phill Gross and Robert Atchinson’s Adage Capital Management.
Insider trading activity in Allscripts Healthcare Solutions Inc (NASDAQ:MDRX)
Bullish insider trading is particularly usable when the company we’re looking at has seen transactions within the past six months. Over the last half-year time frame, Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) has experienced 5 unique insiders buying, and 3 insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to Allscripts Healthcare Solutions Inc (NASDAQ:MDRX). These stocks are Computer Programs & Systems, Inc. (NASDAQ:CPSI), Quality Systems, Inc. (NASDAQ:QSII), MedAssets, Inc. (NASDAQ:MDAS), WebMD Health Corp. (NASDAQ:WBMD), and Medidata Solutions Inc (NASDAQ:MDSO). This group of stocks are in the healthcare information services industry and their market caps match MDRX’s market cap.