Hedge fund TPG Group Holdings has trimmed its position in Quintiles IMS Holdings Inc. (NYSE:Q) in what appears to be a profit taking play. The stock has been trading in a bullish manner for the better part of the year, rising from $75 a share to current highs of $95.79 a share.
Quintiles IMS Bullish Run
Quintiles bullish run has seen the stock register a new 52-week high of $99.75 a share as it closes in on the $100 mark. Over the past month, the stock has surged by an average of 5% with the stock now up by more than 20% for the year. The stock has outperformed the broad market by more than 80% but underperformed its peers by -2%.
Regulatory filings indicate that TPG Group Holdings now owns 33.16 million shares of the common stock, which represent a 15.3% stake. The holding is a drop from 36.94 million shares that the fund held as of the end of June.
TPG is still the largest stakeholder amongst all hedge funds in Quintiles even on the recent sell-off. Lone Pine is another hedge fund with stakes in the company. The hedge fund owns 10.06 million shares valued at $899.99 million. Glenview Capital Management has an ownership of 8.92 million shares valued at $798.46 million. Institution accounts currently account for more than 70% of the company’s outstanding shares.
Recent regulatory filings also indicated that Quintiles IMS owns 5 million shares of Etsy Inc. (NASDAQ:ETSY) representing a 4.2% stake.
Surging Implied Volatility
The prospects of Quintiles IMS continuing to gain ground in the market is high given that the company’s September 15th, 2017 $60 Put continues to experience increased implied volatility. Implied volatility in the stock market most of the time suggests that investors in the underlying stock expect the stock to move in one direction.
High levels of implied volatility on the $60 Put could be an indication of an event ahead that could push Quintiles higher, from the current trading levels.
