HCA Holdings Inc (HCA): Should You Avoid This Stock?

HCA Holdings Inc (NYSE:HCA) has announced Gregory Angle as president of its Salt Lake City-based Mountain Division. This veteran replaces another veteran, John Hanshaw, and the change takes effect when 2014 starts. The company president, Chuck Hall, has called Angle a proven leader with sharp innovative edge. This new division leader is a University of Arizona-trained business administrator and a health services administration professional from Arizona State University.

HCA Holdings Inc (NYSE:HCA)

Hedge funds trading of HCA Holdings Inc (NYSE:HCA) stock

At the end of the third quarter, 61 of hedge funds tracked by our expert friends at Insider Monkey held long positions in this stock. This represents a drop of 3 percent from the previous quarter.

Looking at the hedge funds tracked by Insider Monkey, Glenview Capital has the largest long position in HCA Holdings Inc (NYSE:HCA) Managed by Larry Robbins, Glenview Capital has a $442.1-million investment in the stock, or 3.7 percent of its portfolio. In the No. 2 position is Orbis Investment Management with a $231.2-million investment or 1.7 percent of its portfolio. The fund is managed by William B. Gray. Other funds with long positions in the stock are Blue Ridge Capital, managed by John Griffin, Appaloosa Management LP by David Tepper, and Lee Ainslie’s Maverick Capital.

As views on HCA Holdings Inc (NYSE:HCA) changed, a few fund managers have slashed their holdings. These include First Eagle Investment Management by Jean-Marie Eveillard which cut its holding by close to $57.9 million. Another hedge fund to trim holdings in the stock is Healthcor Management LP, by Arthur B Cohen and Joseph Healey. The fund reduced its holding by $28.8 million. Two hedge funds exited the stock last quarter.

How insiders are trading HCA Holdings Inc (NYSE:HCA)

In the past six months, no insider buying has happened at HCA Holdings Inc (NYSE:HCA), but there have been 12 insider sales (see the details of insider trades here).

For everyday investors, review of hedge funds and insider activity in stocks which are similar to HCA Holdings Inc (NYSE:HCA) is very important as they offer a comprehensive picture of the industry. These stocks include Health Management Associates Inc (NYSE:HMA), LifePoint Hospitals, Inc. (NASDAQ:LPNT), Tenet Healthcare Corp (NYSE:THC), Community Health Systems (NYSE:CYH) and Universal Health Services, Inc. (NYSE:UHS).

These stocks belong to the hospital industry and their market cap is similar to that of HCA.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
LifePoint Hospitals, Inc. (NASDAQ:LPNT) 32 0 3
Health Management Associates Inc (NYSE:HMA) 36 0 3
Community Health Systems (NYSE:CYH) 48 0 2
Tenet Healthcare Corp (NYSE:THC) 38 1 2
Universal Health Services, Inc. (NYSE:UHS) 33 0 5

Investors can gain the much needed insight in hospital stocks such as HCA Holdings Inc (NYSE:HCA) by carefully studying hedge-fund activity and insider trading.


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