Hedge funds run by legendary names like Nelson Peltz and David Tepper make billions of dollars a year for themselves and their super-rich accredited investors (you’ve got to have a minimum of $1 million liquid to invest in a hedge fund) by spending enormous resources on analyzing and uncovering data about small-cap stocks that the big brokerage houses don’t follow. Small caps are where they can generate significant out-performance. That’s why we pay special attention to hedge fund activity in these stocks.
Is Intrepid Healthcare Services Inc (NASDAQ:IPCM) undervalued? Prominent investors are betting on the stock. The number of long hedge fund bets advanced by 3 in Q3. At the end of this article we will also compare Intrepid Healthcare Services Inc to other stocks including Moelis & Co (NYSE:MC), Oil States International, Inc. (NYSE:OIS), and La-Z-Boy Incorporated (NYSE:LZB) to get a better sense of its popularity.
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In the 21st century investor’s toolkit there are plenty of gauges stock traders put to use to value stocks. A duo of the most useful gauges are hedge fund and insider trading sentiment. Our experts have shown that, historically, those who follow the top picks of the best fund managers can outpace the S&P 500 by a superb amount (see the details here).
With all of this in mind, we’re going to take a peek at the fresh action regarding Intrepid Healthcare Services Inc (NASDAQ:IPCM).
How are hedge funds trading Intrepid Healthcare Services Inc (NASDAQ:IPCM)?
At the end of the third quarter, a total of 15 of the hedge funds tracked by Insider Monkey were long this stock, a 25% hike from the second quarter. With hedgies’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Water Island Capital, managed by John Orrico, holds the biggest position in Intrepid Healthcare Services Inc (NASDAQ:IPCM). Water Island Capital has an $80.3 million position in the stock, comprising 4.1% of its 13F portfolio. On Water Island Capital’s heels is Robert Emil Zoellner of Alpine Associates, with a $66.8 million position; 2.6% of his fund’s 13F portfolio is allocated to the company. Other professional money managers with similar optimism comprise Alec Litowitz and Ross Laser’s Magnetar Capital, Paul Glazer’s Glazer Capital, and Matthew Tewksbury’s Stevens Capital Management. All five of the aforementioned positions also ranked as newly-opened positions during the quarter.
Let’s now review hedge fund activity in other stocks similar to Intrepid Healthcare Services Inc (NASDAQ:IPCM). We will take a look at Moelis & Co (NYSE:MC), Oil States International, Inc. (NYSE:OIS), La-Z-Boy Incorporated (NYSE:LZB), and Air Methods Corp (NASDAQ:AIRM). This group of stocks’ market valuations resemble Intrepid Healthcare Services Inc’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MC | 11 | 45528 | 0 |
| OIS | 18 | 131093 | 1 |
| LZB | 18 | 83558 | 2 |
| AIRM | 18 | 83041 | -3 |
As you can see these stocks had an average of 16.25 hedge funds with bullish positions and the average amount invested in these stocks was $86 million. That figure was $260 million in Intrepid Healthcare Services Inc’s case. Oil States International, Inc. (NYSE:OIS) is the most popular stock in this table. On the other hand Moelis & Co (NYSE:MC) is the least popular one with only 11 bullish hedge fund positions. Intrepid Healthcare Services Inc (NASDAQ:IPCM) is not the least popular stock in this group but hedge fund interest is still below average, though the amount of money invested in it is higher than any of the other stocks. Given that, and the rising interest in it among top investors, it may be a good idea to study Intrepid Healthcare Services Inc further and potentially add it to your portfolio.
