Healthcare companies saw reductions in investments from some hedge funds in the second quarter, reports Reuters.
Here are six things to know.
1. Hedge funds that decreased their shares in healthcare companies include Third Point, which billionaire Daniel Loeb founded in the 1990s, and Jana Partners. Both are based in New York City. San Francisco-based Farallon Capital Management also changed investments in some healthcare companies in the second quarter.
2. Jana Partners sold its shares in nine healthcare companies, including San Diego-based biopharmaceutical company Acadia Pharmaceuticals; Hartford, Conn.-based Aetna; and New York City-based health IT company WebMD Health Corp., according to Reuters, which cites quarterly filings released earlier this week.
3. Farallon Capital dissolved its stakes in Indianapolis-based Eli Lilly and Co. and New York City-based Bristol-Myers Squibb Co., according to Reuters, which cites the filings. Eli Lilly and Bristol-Myers are pharmaceutical companies.
4. Third Point also decreased investments in some healthcare companies. This included selling 175,000 shares, or approximately 18 percent of its stake, in Louisville, Ky.-based Humana as well as selling 5 million shares, or about 10 percent of its stake, of Deerfield, Ill.-based Baxter International, a maker of hospital and renal products, according to the report.
5. Overall in the second quarter, S&P 500 healthcare stocks increased 6.7 percent, compared to a 2.6 percent increase in the broad S&P 500 index, according to the report.
6. Reuters notes the actions by some hedge funds came as GOP lawmakers made efforts to repeal and replace the ACA.
Read the full report here.