SAC Capital Increases Wellcare Health Stake (WCG) ~ market folly

Tuesday, July 10, 2012

SAC Capital Increases Wellcare Health Stake (WCG)

Steve Cohen's hedge fund firm SAC Capital yesterday after market close filed a 13G with the SEC on shares of Wellcare Health Plans (WCG).  Per the filing, SAC has revealed a 5% ownership stake in the company with 2,155,721 shares.

This marks a 105% increase in their position size since the end of the first quarter.  The filing was required due to portfolio activity on July 6th.

Shares of WCG have recently seen two surges higher.  First, under the Supreme Court's upholding of Obamacare, WellCare Health Plans shares surged from $50 to $55 on the news.

Then, just yesterday, it was announced that Amerigroup (AGP) would be acquired by Wellpoint (WLP).  It seems shares of WCG rose in tandem on hopes that the company could also potentially be a takeover target in the space.  WCG traded from $59 up to $62.

Per Google Finance, Wellcare Health Plans "provides managed care services to government-sponsored health care programs. WellCare operates in three segments: Medicaid, Medicare Advantage (MA) and Prescription Drug Plan (PDP), which are within its two main business lines: Medicaid and Medicare."

For more on this hedgie, head to more recent portfolio activity from SAC Capital.

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