Hedge Funds Are Betting Big on These Q2 IPOs

The US initial public offering (IPO) market has been rather quiet during the second quarter. Uncertainty related to a potential interest rate increase by the Federal Reserve and to the UK’s Brexit vote have caused companies to delay their IPO plans to the third quarter. Nevertheless, there were a number of companies that decided to proceed despite everything. In this article, we’ll take a look at five post-IPO companies that hedge funds snapped up during the second quarter and see how they have fared since then.

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Bets On Hospital Operator

Opening our top five is Quorum Health Corp (NYSE:QHC). At the end of the quarter, 17 of the funds followed by Insider Monkey had this stock in their equity portfolios, having amassed 30% of the company’s outstanding stock in aggregate. David Einhorn‘s Greenlight Capital had the largest position, having acquired 2.9 million shares worth a little over $31 million according to its latest 13F filing. David Tepper and Appaloosa Management are also betting on this stock, having disclosed ownership of 771,436 shares valued at $8.26 million. A spin-off from Community Health Systems (NYSE:CYH), Quorum Health Corp (NYSE:QHC) owns and operates hospitals. Immediately after the IPO, the stock turned south and is currently down by 52%. For the second quarter, the company posted $529.7 million in revenue and a loss of $8.63 per share.

High Demand For Ingevity Corp

Next up is Ingevity Corp (NYSE:NGVT), a stock that could be found in the equity portfolio of 19 of the funds in our database. Howard Guberman and Sean Dany‘s Gruss Asset Management made a $40.8 million investment in this company, having reported ownership of exactly 1.2 million shares at the end of the quarter. Noah Levy and Eugene Dozortsev have also established a fresh position for their fund, Newtyn Management, having acquired 1.05 million shares reportedly worth $35.9 million. A manufacturer of specialty chemicals and high-performance carbon materials, Ingevity Corp (NYSE:NGVT) has enjoyed a nice rally since going public, with shares having appreciated by 82% through yesterday’s closing price of $41.95 per share. Analysts at KeyCorp initiated coverage of the stock at the beginning of July and assigned an ‘Overweight’ rating with a price target of $43 per share, which was already surpassed earlier this month. For the second quarter, Ingevity Corp (NYSE:NGVT) reported a 5% decline in net sales to $248.7 million and a profit of $25.8 million or $0.66 per share when adjusted for one-time costs.

Turn the page to find out which IPOs ranked on the first three spots among the investors we track.