When high-profile investor George Soros takes an interest in a company, it's bigger news than when other investors toss money into the pot. The latest news from his hedge fund, Soros Fund Management, seems to be that in addition to buying into energy companies, Soros is taking a position in revenue cycle management fund player Emdeon (EM).
Over recent months, Soros Fund Management has gradually gathered up a 7.09 percent ownership stake in Nashville, Tenn.-based Emdeon, with 6.27 million shares now in hand. This came out in an SEC filing in late September, just six weeks after the payment processing vendor went public.
Since Emdeon went public, its shares have fallen about 6 percent, while the S&P 500 has risen about 5 percent. Clearly, Soros thinks the stock is underpriced, and we'd tend to agree with him. Right now the stock sits at around $15/share, and we think there's room for an upward bounce as revenue cycle companies become must-have partners for hospitals. If Soros is ready to buy and hold for six months or so, after health reforms shake out, owning Emdeon may start to look pretty good.
To learn more about Soros' investment:
- read this entry in Seeking Alpha