Investment firm doubles its stake in Healthways

Chicago-based William Blair & Co. now positioned as the third largest shareholder in the Nashville disease-management company

Email | Print By Walker Duncan

12-13-2006 2:40 PM — William Blair & Co. has considerably increased its stake in local disease-management firm Healthways. Filing with the Securities and Exchange Commission yesterday, the Chicago investment house disclosed it has more than doubled its position, increasing its ownership from 1.39 million shares when it last filed in January of 2005 to 3.86 million shares, accounting for roughly 11 percent of Healthways' outstanding stock.

This increase places the firm among Healthways' largest shareholders. Also in that group are Earnest Partners out of Atlanta, which owns approximately 4.2 million shares, and Boston's FMR Corp. which owns just shy of 4 million, according the latest Healthways proxy.

When asked about the significance of such an increase, former Avondale Partners analyst Brooks O'Neil -- who now covers Healthways for Minneapolis-based Dougherty & Company -- told NashvillePost.com that he "wouldn't put undue significance on the move." He went on, however, to point out that William Blair & Co. has historically been bullish in its views of Healthways, a sentiment that O'Neil shares.

Calls made to William Blair & Co. have not been returned.