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Want to Buy eHealth (EHTH) Stock? Here’s What You Need to Know

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Alex Smith
·3 min read
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Alger Small Cap Focus Fund recently released its Q3 2020 Investor Letter, a copy of which you can download here. Class A shares of the Alger Small Cap Focus Fund underperformed the Russell 2000 Growth Index during the third quarter of 2020. You should check out Alger Small Cap Focus Fund's top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q3 2020 Investor Letter, Alger Small Cap Focus Fund highlighted a few stocks and eHealth Inc. (NASDAQ:EHTH) is one of them. eHealth Inc. (NASDAQ:EHTH) is an insurance company. Year-to-date, eHealth Inc. (NASDAQ:EHTH) stock lost 26% and on December 29th it had a closing price of $71.06. Here is what Alger Small Cap Focus Fund said:

"eHealth is a leading health insurance marketplace primarily focused on Medicare plans. Its technology and service platform provide consumer engagement, education and enrollment services. The marketplace offers consumers a broad choice of insurance products, including thousands of options for Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans eHealth also offers non-Medicare options from a diverse mix of health insurance carriers in the U.S. In July eHealth reported better-than-expected financial results for the second quarter, but its stock still underperformed. eHealth has faced increased investor scrutiny of customer churn and its estimates of the lifetime value of an approved member. During its July report of its second quarter results, the company said it experienced higher-than-expected churn among customers who selected programs during open enrollment periods occurring in the fourth quarter of 2019 and the first quarter of 2020."

Countries with the Lowest Cancer Rates in the World in 2018
Countries with the Lowest Cancer Rates in the World in 2018

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In Q3 2020, the number of bullish hedge fund positions on eHealth Inc. (NASDAQ:EHTH) stock increased by about 17% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in eHealth's growth potential. Our calculations showed that eHealth Inc. (NASDAQ:EHTH) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.