Top Stocks for Hedge Funds: LHC Group, Inc.

August 12, 2012 James Heinsman Tops

As economies around the world shift, hedge funds and other asset managers have begun to rethink their investments and reassess the stock market.

One of the newly-appealing stocks is LHC Group, Inc. Seeking Alpha writes:

“According to a Form 4 filing dated July 27th, Christopher Shackelton picked up 31,200 shares of LHC Group, Inc. for Coliseum Capital Management at $16.87/share. This constitutes an ownership interest of 2,129,124 of 11.2% of shares outstanding. At the end of last quarter, Coliseum held 10.7% of shares outstanding. The combined position represents approximately 22.9% of the free float.”

“According to the company’s filing, LHC, a health care provider, caters to the ‘post-acute continuum of care primarily for Medicare beneficiaries.’ The company provides both home-based and hospital-based services. Per LHC’s latest quarterly filing, the company operated in Alabama, Arkansas, Georgia, Florida, Idaho, Kentucky, Louisiana, Maryland, Mississippi, Missouri, North Carolina, Ohio, Oklahoma, Oregon, Tennessee, Texas, Virginia, Washington and West Virginia.

The logic behind Shakelton’s purchase could be based on technical or fundamentals. The stock is currently trading near &18/share- a key resistance level over the last month. Earnings were reported on July 30 and the stock at the time of writing was trading at $18.03. On the fundamental front, this could be interpreted as a long-term play on the aging population (i.e., a steadily increasing proportion of the population will need the company’s services going forward). We believe, however, the logic was based more on technicals, as the aging population story is well-known and, one would think, already impounded in the price.”

Hedge Funds, Leading Stocks, LHC Group, Seeking Alpha, Stock Market,

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