Who Is Buying Hims & Hers Health? Hedge Fund Activity in 2026

Hims & Hers Health, the telehealth and direct-to-consumer wellness platform, has had a brutal 2026. With shares plunging approximately 41% from recent highs, HIMS has gone from a hyped disruptor to a stock that institutional investors are fleeing in droves. The company, which built its brand on accessible treatments for hair loss, erectile dysfunction, skincare, and mental health, now faces a convergence of headwinds: increased competition from Amazon Pharmacy and traditional pharmacy benefit managers, regulatory scrutiny around compounded GLP-1 medications (a significant growth driver), and questions about the sustainability of its customer acquisition economics.

The latest 13F filings deliver the most bearish signal in our entire current coverage universe: only 3 funds are buying while 8 are selling, with 3 holding. This 3-to-8 buy-sell ratio represents a level of institutional pessimism that's rare even among beaten-down stocks.

Hims & Hers Health Institutional Snapshot

A 3-to-8 buy-sell ratio is overwhelmingly bearish. When fewer than a quarter of tracked institutional investors are buying — even after a 41% decline — it suggests the smart money believes there's more downside ahead, or at minimum that better opportunities exist elsewhere. This is the most lopsided selling ratio across all six stocks in this batch.

Who's Buying Hims & Hers Health?

The buyer list is thin and consists entirely of passive index managers:

Vanguard holds $400.5 million and increased its position. As the largest passive holder, Vanguard's increase reflects index rebalancing and systematic inflows rather than an active investment thesis. Still, $400 million in passive support provides a baseline of institutional ownership.

State Street holds $139.8 million and increased. Similar to Vanguard, this is index-driven accumulation. Together, Vanguard and State Street's combined $540 million provides passive stability, but their buying is mechanical rather than conviction-based.

Appaloosa Management increased to $4.2 million. David Tepper taking a small position is the only active buyer in the entire data set. At just $4.2 million, this is barely a rounding error for Appaloosa's portfolio — more of a monitoring position than a conviction bet. Still, Tepper's willingness to own HIMS at all, when virtually every other active manager is selling, hints at contrarian interest.

That's it. Three buyers, and two of them are passive index funds. Not a single active hedge fund beyond Appaloosa is buying Hims & Hers at -41%. This is extraordinarily bearish.

Who's Selling Hims & Hers Health?

The selling side is extensive and represents a broad institutional consensus that HIMS faces structural challenges:

Two Sigma sold its entire position. The quantitative fund's complete exit is a significant signal. Two Sigma's algorithms processed the available data and concluded that HIMS offers negative expected value — bad enough to warrant not just trimming but eliminating the position entirely. For a quant fund, complete exits represent high-confidence bearish signals.

Renaissance Technologies decreased to $92.2 million from a larger position. The legendary quant fund substantially reducing exposure reinforces Two Sigma's bearish assessment. When two of the world's best quantitative funds both aggressively reduce a stock, their models are seeing the same negative signals.

Citadel decreased to $37.5 million. Ken Griffin's multi-strategy fund cutting HIMS by a significant amount adds to the quant selling pressure.

T. Rowe Price reduced to $28.3 million. T. Rowe's growth-oriented managers trimming a telehealth growth stock is particularly meaningful — their healthcare team has clearly become more pessimistic about Hims & Hers' growth trajectory.

Fidelity decreased to $18.9 million. Fidelity's active managers reducing to under $20 million signals a major downgrade in their healthcare team's conviction. For a company that Fidelity previously held with more enthusiasm, this retreat is telling.

Millennium Management decreased to $3.4 million. Israel Englander's fund reducing to a minimal position is effectively a soft exit.

D.E. Shaw decreased to $3.1 million. Another major quant fund reducing to nearly nothing.

Bridgewater Associates decreased to just $123.7K. Ray Dalio's fund maintaining a position worth less than the average U.S. home is essentially symbolic — they haven't sold entirely, but the message is clear.

Notable Moves & What They Signal

Hims & Hers' institutional data reveals the most uniformly bearish picture in our current coverage:

1. Zero active hedge funds buying: This is the single most alarming datapoint. When a stock declines 41% and literally no active hedge fund initiates or meaningfully increases a position, the institutional community is making a collective judgment that the decline is warranted — or that further downside exists. Every other stock in our coverage has at least some active institutional buying at these discount levels.

2. Two Sigma's complete exit confirms quantitative bearishness: Combined with Renaissance, Citadel, Millennium, D.E. Shaw, and Bridgewater all selling, the quant and systematic community is unanimously bearish. This breadth of quant selling is unusual and suggests the models are picking up multiple negative signals simultaneously.

3. The GLP-1 regulatory overhang: Much of Hims & Hers' recent growth came from compounded semaglutide (the active ingredient in Ozempic/Wegovy). Regulatory actions around compound pharmacies and the FDA's stance on GLP-1 availability could dramatically impact a key revenue driver. This regulatory uncertainty likely explains why active managers are unwilling to bottom-fish.

4. Only passive buyers remain: When the only entities buying are index funds doing mechanical rebalancing, there's no intelligent capital supporting the stock's current price. Passive flows can sustain a stock temporarily, but without active conviction buying, any further negative catalyst could trigger accelerated declines.

What This Means for Individual Investors

Hims & Hers Health presents the clearest bearish institutional signal in our current coverage universe:

Bull case: The stock is down 41%, the company is actually growing revenue rapidly, and the telehealth market is expanding. Appaloosa's small position hints at contrarian potential. If the GLP-1 regulatory situation resolves favorably and Hims & Hers successfully diversifies beyond its most controversial product lines, the stock could recover from deeply oversold levels. At some point, the valuation becomes cheap enough to attract active buyers — but that point hasn't arrived yet.

Bear case: The institutional data is uniformly negative. Eight funds selling, only passive funds buying, Two Sigma exiting entirely — this is the kind of institutional configuration that typically precedes further declines rather than bottoms. The GLP-1 regulatory risk is a binary event that could dramatically reduce revenue. Competition from Amazon Pharmacy threatens the core direct-to-consumer model. Customer acquisition costs may be rising as the easy-to-reach demographic is already saturated. T. Rowe, Fidelity, and Renaissance — firms with deep healthcare research capabilities — are all selling.

The bottom line: The 3-to-8 buy-sell ratio makes HIMS the most bearish stock in our current batch, and the complete absence of active hedge fund buying despite a 41% decline is a severe warning sign. When sophisticated healthcare investors at Fidelity and T. Rowe are reducing alongside quant powerhouses like Renaissance and Two Sigma, the institutional consensus is clear: Hims & Hers faces structural challenges that a cheaper stock price alone won't solve. Individual investors should approach with extreme caution and carefully evaluate the GLP-1 regulatory risk before considering a contrarian position.

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FAQ

Which hedge funds are still buying Hims & Hers after the drawdown?

13F filings show only three tracked funds increased HIMS positions: Vanguard ($400.5M) and State Street ($139.8M), both passive index managers, plus a tiny $4.2M position from Appaloosa Management. Notably, no active hedge fund beyond Appaloosa added meaningfully even after the roughly 41% share price decline.

Why are quant funds exiting Hims & Hers?

Two Sigma sold its entire position while Renaissance Technologies, Citadel, Millennium and D.E. Shaw all reduced significantly. 13F data suggests the quant community's models are picking up several negative signals simultaneously around growth momentum and price action, which is unusual breadth of agreement among independent algorithms.

How does GLP-1 regulation factor into the institutional view?

A meaningful portion of Hims & Hers' recent growth came from compounded semaglutide, and FDA decisions on compounded GLP-1 availability create binary regulatory risk. 13F commentary suggests this overhang is one reason active managers at Fidelity and T. Rowe Price are unwilling to bottom-fish even at depressed levels.

What does the subscription-growth story look like to institutions?

The bull case is that telehealth subscription growth and category diversification beyond GLP-1 can re-accelerate the platform. Institutional holders are skeptical for now — only passive index buyers and a token Appaloosa stake remain net positive, while specialist healthcare desks have reduced exposure.

Should the bearish 13F signal be read as an automatic sell signal?

No. 13F data reflects past positioning, not real-time conviction, and a contrarian setup could develop if the regulatory picture improves. This page is informational only and not investment advice — individual investors should weigh their own risk tolerance and the binary regulatory risk before drawing conclusions.