After hospital operator HCA Holdings went public at $30 a share
in March 2011 in a $3.5 billion offering, hedge funds pounced
— and they kept piling on throughout the following
months. Eton Park Capital Management, Viking Global Investors,
Valinor Management and Alyeska Investment Group were among the
funds that bought large stakes.
by Edel Rodriguez
Their timing was off — HCA’s stock
rose as high as $35.24 in early June, only to plunge by 19
percent in one day and continue dropping to less than $18 a
share following a disappointing second-quarter earnings report.
But since then the Nashville-based company has become a
favorite value play among hedge funds, which had increased
their bets in HCA by more than 50 percent by the end of third
quarter 2011, according to Ian Dogan, CEO of the web site
Insider Monkey, which tracks hedge fund holdings. As of...