Below is a note written by CEO Keith McCullough:
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Do you look to make sales on green, or do you freak out alongside the crowd and sell lower on red? We sell on green and we sell short when names we don't like bounce to the top-end of their @Hedgeye Risk Range. One of those Bearish @Hedgeye TREND names (and a great way to play lower-for-longer on bond yields) remains Health Equity (HQY). Here's a summary excerpt from our Institutional Research product of our Healthcare analyst Tom Tobin's short thesis on the name: "Now that economic growth is slowing and Fed is now firmly dovish on yields, we expect the consensus narrative to weight the growth deterioration in the core HDHP business. There is a longer term possibility that HDHP plan penetration resumes an upward trajectory after several years of stalling growth, but we believe this upside risk will remain theoretical until unemployment rates, now at historic lows, tick up significantly." Short the bounce, KM |
