Deerfield Management, led by James E. Flynn, has increased its stake in Streamline Health Solutions Inc. (NASDAQ:STRM). In a newly-amended 13G filing with the U.S. Securities and Exchange Commission, Deerfield revealed holding 2.27 million shares of Streamline Health Solutions Inc. (NASDAQ:STRM), up from 1.82 million shares the fund held as of March 31. The stake equates to 12.18% of the company’s common shares, and is passive by nature. Deerfield initiated the position in Streamline Health Solutions Inc. (NASDAQ:STRM) during the fourth quarter of 2013. The investment has yet to pay off, as shares have declined by 59% since the end of that quarter.
Healthcare-focused hedge fund Deerfield Management has experience addressing a wide variety of financing challenges that companies in the healthcare sector face. The fund specializes in funding R&D, managing hostile takeovers, corporate transitions, and financial advisory services. Currently, Deerfield has more than $5 billion worth of assets under management. As of March 31, the market value of the fund’s public equity portfolio stood at $3.09 billion. Its top holdings, in terms of value, following the first quarter included Auspex Pharmaceuticals Inc (NASDAQ:ASPX), Horizon Pharma PLC (NASDAQ:HZNP), and AbbVie Inc (NYSE:ABBV).
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Georgia-based Streamline Health Solutions Inc. (NASDAQ:STRM) is engaged in providing transformational data-driven solutions to healthcare organizations, and is active mainly in North America. The company has a market cap of $89.05 million, and does not pay a dividend. Streamline Health Solutions Inc. (NASDAQ:STRM) was able to lessen its first quarter 2015 net loss attributable to common shareholders to $2.16 million, versus $2.90 million in the same period last year. The loss per common share was $0.12, versus $0.16 in the same quarter of 2014. Revenues for the first quarter of 2015 decreased by about 11% year-over-year to $6.2 million. The production backlog at the end of the first quarter was $74.6 million, a 19% increase over the same quarter a year ago.
“Given the healthy sales activity we are experiencing early into our second quarter, we firmly believe that our first quarter performance will represent the bottom of the curve. We believe that our key fundamentals will show improvement in the coming quarters, from continued solid bookings, to improving top line revenue growth, to cash on the balance sheet and reduction in our debt,” Streamline Health Solutions Inc. (NASDAQ:STRM) President and Chief Executive Officer (CEO) David W. Sides said in a statement.
As mentioned, Streamline Health Solutions Inc. (NASDAQ:STRM)’s stock performance has not been very impressive long term, or in the nearer term, declining by 36.77% year-to-date (YTD), compared to an industry gain of 3.46%.
At the end of the first quarter of 2015, a total of six of the hedge funds tracked by Insider Monkey were bullish on Streamline Health Solutions Inc. (NASDAQ:STRM), unchanged from the end of the fourth quarter of 2014. The total value of holdings held by the funds tracked by Insider Monkey decreased to $13.6 million, compared to $16.0 million. However, as shares slid by 18% during that time, that accounts for the dip in capital. Aside from Deerfield, Justin John Ferayorni’s Tamarack Capital Management holds 1.14 million shares of Streamline Health Solutions Inc. (NASDAQ:STRM) as of the end of March. Another shareholder of the company is Peter Keane’s Keane Capital Management, holding 414,025 shares as of the end of the first quarter.
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