Is Team Health Holdings LLC (TMH) Going to Burn These Hedge Funds?

Team Health Holdings LLC (NYSE:TMH) was in 26 hedge funds’ portfolio at the end of the first quarter of 2013. TMH investors should be aware of an increase in enthusiasm from smart money in recent months. There were 23 hedge funds in our database with TMH holdings at the end of the previous quarter.

In the financial world, there are plenty of gauges shareholders can use to analyze Mr. Market. A pair of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best fund managers can outpace the S&P 500 by a healthy amount (see just how much).

Equally as beneficial, optimistic insider trading activity is another way to break down the stock market universe. Obviously, there are lots of reasons for an insider to cut shares of his or her company, but just one, very simple reason why they would initiate a purchase. Various empirical studies have demonstrated the useful potential of this strategy if shareholders understand what to do (learn more here).

Now, we’re going to take a glance at the latest action regarding Team Health Holdings LLC (NYSE:TMH).

How have hedgies been trading Team Health Holdings LLC (NYSE:TMH)?

Heading into Q2, a total of 26 of the hedge funds we track were long in this stock, a change of 13% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their stakes substantially.

According to our comprehensive database, Bridger Management, managed by Roberto Mignone, holds the largest position in Team Health Holdings LLC (NYSE:TMH). Bridger Management has a $69.5 million position in the stock, comprising 4.8% of its 13F portfolio. The second largest stake is held by Donald Chiboucis of Columbus Circle Investors, with a $36 million position; 0.3% of its 13F portfolio is allocated to the company. Some other hedgies that hold long positions include Robert Pohly’s Samlyn Capital, Jim Simons’s Renaissance Technologies and Ken Griffin’s Citadel Investment Group.

With a general bullishness amongst the heavyweights, key money managers have jumped into Team Health Holdings LLC (NYSE:TMH) headfirst. Bridger Management, managed by Roberto Mignone, established the most valuable position in Team Health Holdings LLC (NYSE:TMH). Bridger Management had 69.5 million invested in the company at the end of the quarter. Robert Pohly’s Samlyn Capital also initiated a $35 million position during the quarter. The following funds were also among the new TMH investors: John Murphy’s Alydar Capital, Arthur B Cohen and Joseph Healey’s Healthcor Management LP, and Phill Gross and Robert Atchinson’s Adage Capital Management.

What have insiders been doing with Team Health Holdings LLC (NYSE:TMH)?

Bullish insider trading is at its handiest when the company in focus has seen transactions within the past six months. Over the last half-year time period, Team Health Holdings LLC (NYSE:TMH) has seen zero unique insiders buying, and 2 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Team Health Holdings LLC (NYSE:TMH). These stocks are Robert Half International Inc. (NYSE:RHI), On Assignment, Inc. (NYSE:ASGN), Manpowergroup Inc (NYSE:MAN), , and 51job, Inc. (ADR) (NASDAQ:JOBS). This group of stocks belong to the staffing & outsourcing services industry and their market caps match TMH’s market cap.