Hedge fund Sachem Head constructed CVS stake throughout second quarter By Reuters

By Svea Herbst-Bayliss

NEW YORK (Reuters) – Funding agency Sachem Head Capital Administration constructed a brand new stake in CVS Well being Corp (NYSE:) in the course of the second quarter when the healthcare firm’s inventory value dropped roughly 25%, in keeping with a regulatory submitting made on Wednesday.

The agency, run by Scott Ferguson, owned 2.45 million shares, or 0.20% of the corporate, on June 30, the submitting confirmed.

A consultant for Sachem Head didn’t touch upon what the agency’s plans are for the funding, which is one of many hedge fund’s greatest together with ZoomInfo Applied sciences and Twilio (NYSE:).

Hypothesis has mounted amongst fund managers that an activist investor might swoop in to push CVS to make adjustments that may enhance its share value. Since January, CVS’ inventory value has dropped 31% whereas the broader market has climbed roughly 15%.

Sachem Head, which settled a proxy struggle with US Meals Holding (NYSE:) Corp two years in the past, additionally reduce its holding within the inventory by almost 30% in the course of the quarter.

The corporate remained Sachem Head’s greatest U.S. funding on June 30, with a holding of 9.7 million shares, which was a 4% stake within the firm. This week, Sachem Head mentioned in a brand new submitting that it had additional reduce its US Meals funding to roughly 5 million shares, a 2% stake within the firm.

Funding managers are required to inform regulators how a lot inventory they owned in U.S. corporations on the finish of every quarter in so-called 13F filings. Whereas the filings are backward wanting, different buyers watch them carefully for hints on developments, together with recommendations of which corporations activist buyers may be focusing on.