We just realized that famous investor Ron Baron is pretty bullish on ATHN. We may do a follow up, but for now here is an excerpt from Baron Funds Q1 letter, which came out shortly before David Einhorn’s famous short.See David Einhorn Presentation At Ira Sohn: Short AthenaHealth
Athenahealth, Inc (NASDAQ:ATHN) provides cloud-based business services for health care providers. The company’s flagship offering, athenaCollector, automates and manages billing-related functions for medical practices.
We believe Athenahealth, Inc (NASDAQ:ATHN)’s offering is unique. All clients operate on a single web-based version of athenahealth, Inc (NASDAQ:ATHN)’s software, which allows each client to benefit immediately from regular updates and the collective experience of other clients. This, in turn, helps improve collections and reduce collection cycles. The company’s core addressable market is roughly $36 billion, which represents its potential billings as a percentage of U.S. health care expenditures on physician and clinical services. Management announced plans to enter the hospital market with a new service offering that helps manage transitions of care throughout a health care system. We believe this new offering will expand the size of the company’s addressable market and enable it to realize management’s vision of becoming the nation’s health care information backbone. (Neal Kaufman)
In a rare interview with Harvard Business School that was published online earlier this month, (it has since been taken down) value investor Seth Klarman spoke at length about his investment process, philosophy and the changes value investors have had to overcome during the past decade. Klarman’s hedge fund, the Boston-based Baupost has one of Read More
From Baron Funds’ first quarter 2014 letter to shareholders.