Insider Monkey finished processing more than 700 13F filings made by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30th. What do these smart investors think about Allscripts Healthcare Solutions Inc (NASDAQ:MDRX)?
Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) shareholders have witnessed a decrease in activity from the world’s largest hedge funds lately. Our calculations also showed that MDRX isn’t among the 30 most popular stocks among hedge funds.
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s flagship best performing hedge funds strategy returned 6.3% year to date (through December 3rd) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 18 percentage points since its inception (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Let’s go over the recent hedge fund action surrounding Allscripts Healthcare Solutions Inc (NASDAQ:MDRX).
What have hedge funds been doing with Allscripts Healthcare Solutions Inc (NASDAQ:MDRX)?
Heading into the fourth quarter of 2018, a total of 20 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -9% from the previous quarter. On the other hand, there were a total of 19 hedge funds with a bullish position in MDRX at the beginning of this year. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Fisher Asset Management was the largest shareholder of Allscripts Healthcare Solutions Inc (NASDAQ:MDRX), with a stake worth $71 million reported as of the end of September. Trailing Fisher Asset Management was D E Shaw, which amassed a stake valued at $51.5 million. Millennium Management, Tamarack Capital Management, and Royce & Associates were also very fond of the stock, giving the stock large weights in their portfolios.
Because Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) has faced a decline in interest from the entirety of the hedge funds we track, we can see that there were a few funds who sold off their full holdings in the third quarter. At the top of the heap, Isaac Corre’s Governors Lane dropped the biggest stake of the “upper crust” of funds followed by Insider Monkey, worth an estimated $17.5 million in stock, and Jim Simons’s Renaissance Technologies was right behind this move, as the fund dropped about $7.4 million worth. These moves are interesting, as total hedge fund interest was cut by 2 funds in the third quarter.
Let’s check out hedge fund activity in other stocks similar to Allscripts Healthcare Solutions Inc (NASDAQ:MDRX). These stocks are Artisan Partners Asset Management Inc (NYSE:APAM), Companhia Energetica de Minas Gerais (NYSE:CIG), Ebix Inc (NASDAQ:EBIX), and Great Western Bancorp Inc (NYSE:GWB). This group of stocks’ market valuations are closest to MDRX’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| APAM | 13 | 124514 | 0 |
| CIG | 6 | 3508 | -1 |
| EBIX | 16 | 116046 | 2 |
| GWB | 8 | 17358 | 0 |
| Average | 10.75 | 65357 | 0.25 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 10.75 hedge funds with bullish positions and the average amount invested in these stocks was $65 million. That figure was $250 million in MDRX’s case. Ebix Inc (NASDAQ:EBIX) is the most popular stock in this table. On the other hand Companhia Energetica de Minas Gerais (NYSE:CIG) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
Disclosure: None. This article was originally published at Insider Monkey.
