DaVita HealthCare Partners Inc (NYSE:DVA) was in 36 hedge funds’ portfolio at the end of the first quarter of 2013. DVA investors should be aware of an increase in hedge fund interest lately. There were 35 hedge funds in our database with DVA positions at the end of the previous quarter.
According to most shareholders, hedge funds are viewed as unimportant, old financial vehicles of the past. While there are over 8000 funds in operation today, we at Insider Monkey look at the elite of this club, close to 450 funds. It is estimated that this group oversees the majority of all hedge funds’ total capital, and by tracking their top picks, we have unsheathed a number of investment strategies that have historically outpaced the S&P 500 index. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 23.3 percentage points in 8 months (check out a sample of our picks).
Equally as important, bullish insider trading activity is a second way to parse down the investments you’re interested in. Obviously, there are plenty of stimuli for an insider to drop shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Several academic studies have demonstrated the useful potential of this method if piggybackers understand what to do (learn more here).
Consequently, we’re going to take a glance at the key action surrounding DaVita HealthCare Partners Inc (NYSE:DVA).
What does the smart money think about DaVita HealthCare Partners Inc (NYSE:DVA)?
In preparation for this quarter, a total of 36 of the hedge funds we track were bullish in this stock, a change of 3% from the previous quarter. With hedgies’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were increasing their stakes significantly.
According to our comprehensive database, Warren Buffett’s Berkshire Hathaway had the most valuable position in DaVita HealthCare Partners Inc (NYSE:DVA), worth close to $1.7758 billion, comprising 2.1% of its total 13F portfolio. Sitting at the No. 2 spot is Pennant Capital Management, managed by Alan Fournier, which held a $322.2 million position; 6.3% of its 13F portfolio is allocated to the stock. Some other peers with similar optimism include Stephen Mandel’s Lone Pine Capital, D. E. Shaw’s D E Shaw and Jeffrey Gates’s Gates Capital Management.
Now, key money managers were breaking ground themselves. Orbis Investment Management, managed by William B. Gray, assembled the largest position in DaVita HealthCare Partners Inc (NYSE:DVA). Orbis Investment Management had 90.6 million invested in the company at the end of the quarter. Jacob Gottlieb’s Visium Asset Management also made a $59.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Alok Agrawal’s Bloom Tree Partners, Eric Bannasch’s Cadian Capital, and Jim Simons’s Renaissance Technologies.
What do corporate executives and insiders think about DaVita HealthCare Partners Inc (NYSE:DVA)?
Insider buying is particularly usable when the company in focus has seen transactions within the past six months. Over the last six-month time period, DaVita HealthCare Partners Inc (NYSE:DVA) has seen 1 unique insiders purchasing, and 11 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to DaVita HealthCare Partners Inc (NYSE:DVA). These stocks are Hanger Inc (NYSE:HGR), Acadia Healthcare Company Inc (NASDAQ:ACHC), HEALTHSOUTH Corp. (NYSE:HLS), Mednax Inc. (NYSE:MD), and Fresenius Medical Care AG & Co. (ADR) (NYSE:FMS). This group of stocks are the members of the specialized health services industry and their market caps match DVA’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Hanger Inc (NYSE:HGR) | 10 | 0 | 15 |
| Acadia Healthcare Company Inc (NASDAQ:ACHC) | 14 | 1 | 18 |
| HEALTHSOUTH Corp. (NYSE:HLS) | 22 | 1 | 1 |
| Mednax Inc. (NYSE:MD) | 14 | 0 | 9 |
| Fresenius Medical Care AG & Co. (ADR) (NYSE:FMS) | 6 | 0 | 0 |
With the returns demonstrated by Insider Monkey’s studies, retail investors should always monitor hedge fund and insider trading activity, and DaVita HealthCare Partners Inc (NYSE:DVA) shareholders fit into this picture quite nicely.
