In this article, we discuss 10 healthcare stocks to buy according to Tiger Cub Chase Coleman. If you want to skip our detailed analysis of these stocks, go directly to 5 Healthcare Stocks to Buy According to Tiger Cub Chase Coleman.
After graduating from Williams College in 1997 with a Bachelor’s in Economics, Chase Coleman worked for Julian Robertson’s Tiger Management for almost 4 years as an investment analyst, from July 1997 to March 2001. When Tiger Management was shut down in 2000, Coleman continued working for Robertson, managing his personal capital. Soon after, Chase Coleman, a true Tiger Cub, founded Tiger Global Management in 2001, with $25 million start-up capital from Julian Robertson.
Tiger Global Management has a portfolio valued at over $52 billion, as per the 13F filings from the third quarter of 2021. Coleman follows a technology-themed investment strategy, with 50% of his portfolio concentrated with investments in the technology sector. He also has interests in the consumer discretionary, healthcare, finance, and communications sectors.
Chase Coleman follows two main investing strategies at Tiger Global Management, dividing the total portfolio capital between the private and public equity business managed by the hedge fund. The public equity business at Tiger Global conducts extensive fundamental research on selected industries and geographies, focused on long-term investments in the companies that are positioned to deliver the highest returns. The fund’s private equity business was launched in 2003. The private equity segment has ten-year investment horizons and targets growth-oriented private companies, with a particular interest in businesses from the U.S., China, and India.
Some of the most notable stocks from Chase Coleman’s third quarter portfolio include Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms, Inc. (NASDAQ:FB), Netflix, Inc. (NASDAQ:NFLX), and Alibaba Group Holding Limited (NYSE:BABA).
Chase Coleman of Tiger Global
Our Methodology
To select the 10 best healthcare stocks to buy according to Tiger Cub Chase Coleman, we used the Q3 portfolio of his hedge fund, Tiger Global Management.
For the selected companies, we have mentioned the Q3 earnings, analyst ratings, and the hedge fund sentiment around each stock, ranking the list according to Tiger Global Management’s stake value in each holding.
Healthcare Stocks to Buy According to Tiger Cub Chase Coleman
10. Oak Street Health, Inc. (NYSE:OSH)
Tiger Global Management’s Stake Value: $1,063,000
Percentage of Tiger Global Management’s 13F Portfolio: 0.00%
Number of Hedge Fund Holders: 19
Oak Street Health, Inc. (NYSE:OSH) is a primary healthcare company offering preventative care to senior citizens on Medicare. Oak Street Health, Inc. (NYSE:OSH) works towards lowering medical costs and improving the patient experience. Tiger Global Management, as of the third quarter of 2021, holds 25,000 Oak Street Health, Inc. (NYSE:OSH) shares, worth $1.06 million.
According to Insider Monkey’s Q3 data, 19 hedge funds reported owning stakes in Oak Street Health, Inc. (NYSE:OSH), worth $395.2 million. This is compared to 33 funds being bullish on the stock in the preceding quarter, with total stakes amounting to $561.3 million. Route One Investment Company, the largest Oak Street Health, Inc. (NYSE:OSH) stakeholder, increased its position in the company by 76% in Q3, holding 2.22 million shares worth $94.5 million.
In the third quarter report, published on November 8, Oak Street Health, Inc. (NYSE:OSH) posted a loss per share of $0.48, missing estimates by $0.12. The $388.70 million revenue was up 78.39% year-over-year, exceeding estimates by $31.17 million.
On December 17, Morgan Stanley analyst Ricky Goldwasser downgraded Oak Street Health, Inc. (NYSE:OSH) to Equal Weight from Overweight with a price target of $33, down from $44. Oak Street Health, Inc. (NYSE:OSH)’s fundamental growth story looks intact, but Goldwasser’s new valuation analysis shows that Oak Street Health, Inc. (NYSE:OSH)’s long-term margin targets are priced in, especially relative to competitors like 1Life Healthcare, Inc. (NASDAQ:ONEM).
Oak Street Health, Inc. (NYSE:OSH) is one of the best stocks from the Q3 portfolio of Tiger Cub Chase Coleman, in addition to Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms, Inc. (NASDAQ:FB), Netflix, Inc. (NASDAQ:NFLX), and Alibaba Group Holding Limited (NYSE:BABA).
9. Health Catalyst, Inc. (NASDAQ:HCAT)
Tiger Global Management’s Stake Value: $2,501,000
Percentage of Tiger Global Management’s 13F Portfolio: 0.00%
Number of Hedge Fund Holders: 26
Health Catalyst, Inc. (NASDAQ:HCAT), a recognized provider of data and analytics technology and services to healthcare organizations, is one of the best healthcare stocks to buy according to Tiger Cub Chase Coleman. Coleman, via Tiger Global Management, owns 50,000 shares of Health Catalyst, Inc. (NASDAQ:HCAT) as of Q3 2021, worth $2.5 million.
Publishing its third quarter results on November 9, Health Catalyst, Inc. (NASDAQ:HCAT) posted a loss per share of $0.18, beating estimates by $0.04. The quarterly revenue jumped 30.82% to $61.74 million, outperforming estimates by $913,640.
Jefferies analyst Glen Santangelo on December 1 initiated coverage of Health Catalyst, Inc. (NASDAQ:HCAT) with a Hold rating and a $48 price target. While the analyst believes Health Catalyst, Inc. (NASDAQ:HCAT)’s data and analytics platform offers a compelling value proposition, he initiated a Hold rating due to increased competition, limited visibility, and lack of profitability.
The leading Health Catalyst, Inc. (NASDAQ:HCAT) stakeholder as of September 2021 is Rock Springs Capital Management, with 850,000 shares worth $42.5 million. Overall, 26 hedge funds tracked by Insider Monkey were long Health Catalyst, Inc. (NASDAQ:HCAT) in Q3 2021, up from 22 funds in the prior quarter.
8. Outset Medical, Inc. (NASDAQ:OM)
Tiger Global Management’s Stake Value: $2,719,000
Percentage of Tiger Global Management’s 13F Portfolio: 0.00%
Number of Hedge Fund Holders: 18
Chase Coleman holds 55,000 Outset Medical, Inc. (NASDAQ:OM) shares, worth $2.71 million, as of the third quarter of 2021. Outset Medical, Inc. (NASDAQ:OM) is a pioneering medical technology and software company specializing in reimagining dialysis for patients and medical professionals.
On November 3, Outset Medical, Inc. (NASDAQ:OM) reported its Q3 results, posting a loss per share of $0.59, beating estimates by $0.10. The revenue increased 91.32% from the preceding year quarter, reaching $26.32 million, exceeding estimates by $1.04 million.
According to the hedge funds tracked by Insider Monkey in the third quarter, billionaire Daniel Sundheim’s D1 Capital Partners is the largest Outset Medical, Inc. (NASDAQ:OM) stakeholder, with 4.57 million shares worth $226.2 million. Overall, 18 funds were long Outset Medical, Inc. (NASDAQ:OM) in Q3 2021, with total stakes amounting to $602.7 million.
7. American Well Corporation (NYSE:AMWL)
Tiger Global Management’s Stake Value: $3,644,000
Percentage of Tiger Global Management’s 13F Portfolio: 0.00%
Number of Hedge Fund Holders: 24
American Well Corporation (NYSE:AMWL), a Boston-based telehealth company connecting doctors with patients for virtual checkups and consultations, is one of the top healthcare stocks to buy according to Tiger Global Management’s Chase Coleman. As of Q3 2021, Coleman owns 400,000 American Well Corporation (NYSE:AMWL) shares, worth $3.64 million.
A total of 24 hedge funds monitored by Insider Monkey at the end of September 2021 were bullish on American Well Corporation (NYSE:AMWL), up from 20 funds in the previous quarter, with total Q3 stakes amounting to approximately $79 million. The leading American Well Corporation (NYSE:AMWL) stakeholder is Robert M. P. Luciano’s VGI Partners, with 2.23 million shares worth $20.36 million.
In American Well Corporation (NYSE:AMWL)’s third quarter earnings report, published on November 10, the company posted a loss per share of $0.17, topping estimates by $0.04. The $62.22 million revenue was down 0.52% on a year-over-year basis, missing estimates by $3.26 million.
On December 1, Jefferies analyst Glen Santangelo initiated coverage of American Well Corporation (NYSE:AMWL) with a Hold rating and a $6 price target, citing slower growth in 2021. The analyst also observed that American Well Corporation (NYSE:AMWL) “missed on many operating metrics discussed at the beginning of the year”.
Here is what Baron Funds has to say about American Well Corporation (NYSE:AMWL) in its Q2 2021 investor letter:
“We exited modest positions in American Well Corporation during the quarter. We think that this sale exemplifies the merits of maintaining small initial position sizes. We were initially excited by the long-term opportunities represented by the business and the valuations at which we were able to deploy capital. However, our ongoing and iterative due diligence efforts surfaced concerns regarding the sustainability of competitive advantages over our investment horizon. Additionally, we observed changes to incentive structures that potentially foreshadowed a future misalignment with shareholders. We were easily able to exit these modest positions and reallocate that capital to investments in which we have greater conviction that we believe offer more attractive risk-adjusted returns.”
6. Definitive Healthcare Corp. (NASDAQ:DH)
Tiger Global Management’s Stake Value: $25,698,000
Percentage of Tiger Global Management’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 23
Definitive Healthcare Corp. (NASDAQ:DH) is a company that transforms data, analytics, and expertise into healthcare commercial intelligence to accelerate the growth of healthcare corporations. Tiger Global Management holds a $25.69 million position in Definitive Healthcare Corp. (NASDAQ:DH) as of September 2021, which represents 0.04% of the firm’s total Q3 investments.
Definitive Healthcare Corp. (NASDAQ:DH) posted its Q3 earnings on November 8, announcing an EPS of $0.01, missing estimates by $0.01. Revenue over the period totaled $43.08 million, beating estimates by $1.90 million.
On December 17, Morgan Stanley analyst Craig Hettenbach upgraded Definitive Healthcare Corp. (NASDAQ:DH) to Overweight from Equal Weight with a price target of $40, down from $46. With the stock 50% off its high and below the IPO price, he says investors get “a second shot to buy into secular growth and high profitability.” Catalysts for Definitive Healthcare Corp. (NASDAQ:DH) include potential new enterprise customer announcements and tuck-in M&A optionality, according to the analyst.
Of the 23 hedge funds that were bullish on Definitive Healthcare Corp. (NASDAQ:DH) as per the third quarter database of elite funds maintained by Insider Monkey, Greg Poole’s Echo Street Capital Management is the leading stakeholder of the company, holding over 1 million shares worth $45.1 million.
Definitive Healthcare Corp. (NASDAQ:DH) is a notable stock from the Q3 portfolio of Chase Coleman, in addition to Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms, Inc. (NASDAQ:FB), Netflix, Inc. (NASDAQ:NFLX), and Alibaba Group Holding Limited (NYSE:BABA).
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Disclosure: None. 10 Healthcare Stocks to Buy According to Tiger Cub Chase Coleman is originally published on Insider Monkey.
