Volcano Corporation (VOLC), Relypsa Inc (RLYP), Inogen Inc (INGN):5 Small-Cap Healthcare Stocks Hedge Funds Are Flocking To

Relypsa Inc (NASDAQ:RLYP)’s fund ownership nearly doubled in the fourth quarter, to 22, as Jim Simons and David E. Shaw among others, became new investors of the biopharmaceutical company. Relypsa’s Patiromer for Oral Suspension for the treatment of hyperkalemia is currently under review by the U.S Food and Drug Administration, and if approved, would be the first treatment approved for the condition in over 50 years.  Relypsa was given a glowing recommendation by analysts at Wedbush in late January, as they gave it a $63.00 price target, an upside on current share prices of over 75%. Relypsa is up 14.45% year-to-date.

Quidel Corporation (NASDAQ:QDEL) is a leading diagnostic healthcare solutions provider, based in San Diego, with a market cap of $898 million. It’s been well over a year since we reported on anything Quidel related, as the company was in the midst of closing out a very strong 2013. Quidel has been up and down since then, but funds became very interested in it during the past quarter, as ownership more than doubled. Among the funds with new positions in Quidel are Steve Cohen’s Point72 Asset Management, and Israel Englander’s Millennium Management. Quidel announced strong fourth quarter, 2014 earnings on February 11, with earnings per share of $0.37, trouncing estimates of $0.09.

Inogen Inc (NASDAQ:INGN) is our final hot healthcare stock, a $634 million market cap company that has developed innovative oxygen concentrators for the treatment of chronic respiratory conditions. Fund ownership in Inogen tripled last quarter, as shares rose 50% to close out the year. Shares are up another 6.28% year-to-date, and over 120% lifetime since it went public in early 2014. Investors who are breathing easier with Inogen in their portfolios include Anand Parekh of Alyeska Investment Group, and Robert B. Gillam of McKinley Capital Management.

Disclosure: None