There are 5 stocks that killed hedge funds. That is according to the posting that I read last November (a bit old but worth reading). Insider Monkey made a posting with regards to the "5 Stocks That Killed Hedge Funds Last Week" (take note of the date).
We have identified five stocks that had absolutely horrible days last week. Assuming the funds we track have not changed their holdings since the end of June, there were key funds that lost big money on these price drops. The first company on our list is HMS Holdings Corp. (NASDAQ:HMSY).
The company was down over 23% on Friday, October 26th—around $6.30—after missing quarterly estimates and offering lower guidance. There were a number of insiders who were able to cash out before the huge decline. Even though the company trades at 45x it did just sign its largest contract in history and trades at "just" 30x forward earnings. The company provides services for ensuring healthcare claims are paid correctly, and is expected to grow five-year EPS at over 25% annually. As a result, we believe that this pullback could be a buying opportunity. Please go to the site of Insider Monkey to see the stocks that killed hedge funds.
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