Is Tenet Healthcare Corp (NYSE:THC) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to work. The top picks of these firms have historically outperformed the market when we account for known risk factors, making them very valuable investment ideas.
Is Tenet Healthcare Corp (NYSE:THC) a buy, sell, or hold? Prominent investors were getting more bullish. The number of long hedge fund positions inched up by 8 lately. Tenet Healthcare Corp (NYSE:THC) was in 47 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic was previously 44. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that THC isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 39 hedge funds in our database with THC positions at the end of the second quarter.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Keeping this in mind we’re going to review the latest hedge fund action surrounding Tenet Healthcare Corp (NYSE:THC).
Justin John Ferayorni of Tamarack Capital Management
Do Hedge Funds Think THC Is A Good Stock To Buy Now?
At the end of September, a total of 47 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 21% from the previous quarter. By comparison, 33 hedge funds held shares or bullish call options in THC a year ago. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Glenview Capital held the most valuable stake in Tenet Healthcare Corp (NYSE:THC), which was worth $574.9 million at the end of the third quarter. On the second spot was Viking Global which amassed $222.8 million worth of shares. Camber Capital Management, Centerbridge Partners, and Millennium Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Nut Tree Capital allocated the biggest weight to Tenet Healthcare Corp (NYSE:THC), around 19.77% of its 13F portfolio. Centerbridge Partners is also relatively very bullish on the stock, setting aside 17.26 percent of its 13F equity portfolio to THC.
As aggregate interest increased, key money managers were leading the bulls’ herd. GoldenTree Asset Management, managed by Steven Tananbaum, initiated the most valuable position in Tenet Healthcare Corp (NYSE:THC). GoldenTree Asset Management had $31.5 million invested in the company at the end of the quarter. OrbiMed Advisors also initiated a $20.7 million position during the quarter. The other funds with brand new THC positions are Justin John Ferayorni’s Tamarack Capital Management, Jinghua Yan’s TwinBeech Capital, and Greg Eisner’s Engineers Gate Manager.
Let’s check out hedge fund activity in other stocks similar to Tenet Healthcare Corp (NYSE:THC). We will take a look at RLX Technology Inc. (NYSE:RLX), Boyd Gaming Corporation (NYSE:BYD), Kohl’s Corporation (NYSE:KSS), Pilgrim’s Pride Corporation (NASDAQ:PPC), Old Republic International Corporation (NYSE:ORI), Starwood Property Trust, Inc. (NYSE:STWD), and PLDT Inc. (NYSE:PHI). This group of stocks’ market values are similar to THC’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| RLX | 11 | 251879 | -1 |
| BYD | 37 | 779407 | 1 |
| KSS | 37 | 951330 | -3 |
| PPC | 25 | 254968 | 7 |
| ORI | 20 | 357593 | -6 |
| STWD | 12 | 161117 | 1 |
| PHI | 5 | 104426 | 0 |
| Average | 21 | 408674 | -0.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $409 million. That figure was $1905 million in THC’s case. Boyd Gaming Corporation (NYSE:BYD) is the most popular stock in this table. On the other hand PLDT Inc. (NYSE:PHI) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Tenet Healthcare Corp (NYSE:THC) is more popular among hedge funds. Our overall hedge fund sentiment score for THC is 90. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks returned 28.6% in 2021 through November 30th but still managed to beat the market by 5.6 percentage points. Hedge funds were also right about betting on THC as the stock returned 9.7% since the end of September (through 11/30) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Follow Tenet Healthcare Corp (NYSE:THC)
Follow Tenet Healthcare Corp (NYSE:THC)
Suggested Articles:
- 10 Transportation as a Service Stocks to Buy
- 11 Best Lithium Stocks To Buy Now
- Top 20 Japanese Companies
Disclosure: None. This article was originally published at Insider Monkey.
