Friday, 6 May 2016
Last updated 6 hours ago
Aug 21 2012 | 1:05pm ET
Greenlight Capital's investments in healthcare companies may be calculated to profit from President Barack Obama's possible defeat in November, but they may already be paying off for the hedge fund.
The $7.7 billion fund's investment in Coventry Health Care jumped 20% yesterday after Aetna Inc. agreed to buy Coventry for $5.6 billion. Greenlight bought 6.66 million Coventry shares for about $200 million in the second quarter; yesterday, the shares surged 20% and are now valued at $280 million.
Greenlight also bought a stake in Cigna Corp., saying that no matter what happens with "Obamacare" in the future, it had already depressed the prices of managed healthcare companies.