Athenahealth Inc. has had an excess of news around it in recent months. Hedge fund activity pertaining to the company along with other institutional investors has seen an increase. However, the company has not impressed investors with institutional sentiment dropping from 1.01 to 0.01 overall in the 3rd quarter of 2015. The 1.0 drop can be broken down into 20 funds selling all owned shares of Athenahealth Inc. while another 86 funds reduced their position in the company. It wasn’t all selling shares since 40 funds bought initial stakes in the company with another 66 funds increasing their positions. The institutional investors now own 47.97 million shares which are a significant 19% reduction from 2015 high. The services that Athenahealth Inc. offers are related to administrative needs in the healthcare industry. This includes cloud services for billing, records, orders, patient portals, and management services. They currently service 75,000 healthcare providers and businesses.
James Dondero has been invested in Athenahealth Inc. with his hedge fund known as Highland Capital Management. The management fund under Dondero’s guidance has reduced their stake by an impressive 83.13% in the first quarter of 2016 due to Athenahealth Inc. underperforming during a stock market rally. This is after James Dondero had been increasing the management funds position in previous months. It isn’t uncommon for hedge funds to change tactics on companies especially when they begin underperforming and as previously noted Athenahealth Inc. has had a lot of institutional investor attention in the 4th quarter of 2015 and 1st quarter of 2016.
Athenahealth Inc. isn’t the only business that Highland Capital Management has invested in under the direction of James Dondero. At its last filing the company employs 105 full and part-time employees and is managing approximately $15 billion in capital from 26 – 100 individual clients. Formed in 1993 by Dondero the business has specialized in alternative banking and finance just like its President, James Dondero did during his years gaining experience in the industry.
Source: Franklin Independent