After several tireless days, we have finished crunching the numbers from the more than 700 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms’ equity portfolios as of September 30. The results of that effort will be put on display in this article, as we share valuable insight into the smart money sentiment towards Nobilis Health Corp (NYSEMKT:HLTH).
Nobilis Health Corp (NYSEMKT:HLTH) investors should pay attention to an increase in hedge fund interest lately. Nobilis Health Corp (NYSEMKT:HLTH) was in 6 hedge funds’ portfolios at the end of the third quarter of 2015. There were 5 hedge funds in our database with Nobilis Health Corp (NYSEMKT:HLTH) holdings at the end of the previous quarter. At the end of this article, we will also compare Nobilis Health Corp (NYSEMKT:HLTH) to other stocks including Blackrock Corporate High Yield Fund Inc (NYSE:HYT), REX American Resources Corp (NYSE:REX), and LSB Industries, Inc. (NYSE:LXU) to get a better sense of its popularity.
Follow Nobilis Health Corp.
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At the moment, there are tons of indicators that market participants put to use to evaluate their holdings. A couple of the best indicators are hedge fund and insider trading sentiment. Our experts have shown that, historically, those who follow the top picks of the top hedge fund managers can outperform the S&P 500 by a healthy margin (see the details here).
Keeping this in mind, let’s take a glance at the new action regarding Nobilis Health Corp (NYSEMKT:HLTH).
How have hedgies been trading Nobilis Health Corp (NYSEMKT:HLTH)?
At the end of the previous quarter, a total of 6 of the hedge funds tracked by Insider Monkey held long positions in this stock, an increase of 20% from the second quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, McKinley Capital Management, managed by Robert B. Gillam, holds the number one position in Nobilis Health Corp (NYSEMKT:HLTH). McKinley Capital Management has a $2.1 million position in the stock, comprising 0.1% of its 13F portfolio. On McKinley Capital Management’s heels is Royce & Associates, managed by Chuck Royce, which holds a $1.9 million position; the fund has less than 0.1% of its 13F portfolio invested in the stock. Other members of the smart money that are bullish comprise Peter Keane’s Keane Capital Management, Andrew Weiss’ Weiss Asset Management and Bruce Silver’s Silver Capital Management LLC.
As industrywide interest jumped, some big names were breaking ground themselves. Keane Capital Management also made a $1.3 million investment in the stock during the quarter. The other funds with brand new Nobilis Health Corp (NYSEMKT:HLTH) positions are Silver Capital Management LLC, and John Overdeck and David Siegel’s Two Sigma Advisors.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Nobilis Health Corp (NYSEMKT:HLTH) but similarly valued. These stocks are Blackrock Corporate High Yield Fund Inc (NYSE:HYT), REX American Resources Corp (NYSE:REX), LSB Industries, Inc. (NYSE:LXU), and Tristate Capital Holdings Inc (NASDAQ:TSC). All of these stocks’ market caps match Nobilis Health Corp (NYSEMKT:HLTH)’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HYT | 7 | 90026 | 2 |
| REX | 10 | 29790 | -2 |
| LXU | 19 | 79273 | 7 |
| TSC | 11 | 35316 | -1 |
As you can see, these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $59 million. That figure was $6 million in Nobilis Health Corp (NYSEMKT:HLTH)’s case. LSB Industries, Inc. (NYSE:LXU) is the most popular stock in this table. On the other hand, Blackrock Corporate High Yield Fund Inc (NYSE:HYT) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks, Nobilis Health Corp (NYSEMKT:HLTH) is even less popular than Blackrock Corporate High Yield Fund Inc (NYSE:HYT). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case, more research is warranted.
