Cardionet Inc (NASDAQ:BEAT) has seen a decrease in hedge fund interest in recent months.
In today’s marketplace, there are a multitude of methods shareholders can use to analyze Mr. Market. Some of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top money managers can outclass their index-focused peers by a superb margin (see just how much).
Just as integral, bullish insider trading sentiment is another way to break down the financial markets. As the old adage goes: there are many reasons for an upper level exec to drop shares of his or her company, but just one, very obvious reason why they would buy. Many academic studies have demonstrated the market-beating potential of this strategy if you know what to do (learn more here).
With these “truths” under our belt, we’re going to take a glance at the latest action encompassing Cardionet Inc (NASDAQ:BEAT).
How are hedge funds trading Cardionet Inc (NASDAQ:BEAT)?
Heading into 2013, a total of 7 of the hedge funds we track were long in this stock, a change of -22% from the previous quarter. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were increasing their stakes significantly.
Of the funds we track, DAFNA Capital Management, managed by Nathan Fischel, holds the biggest position in Cardionet Inc (NASDAQ:BEAT). DAFNA Capital Management has a $1.4 million position in the stock, comprising 2.2% of its 13F portfolio. Coming in second is Renaissance Technologies, managed by Jim Simons, which held a $1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other peers with similar optimism include Kevin Kotler’s Broadfin Capital, Gregory Fraser, Rudolph Kluiber, and Timothy Kroch’s GRT Capital Partners and Peter Algert and Kevin Coldiron’s Algert Coldiron Investors.
Since Cardionet Inc (NASDAQ:BEAT) has experienced declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there were a few fund managers that slashed their full holdings at the end of the year. At the top of the heap, JΘr⌠me Pfund and Michael Sj÷str÷m’s Sectoral Asset Management sold off the largest investment of the 450+ funds we key on, valued at about $1.9 million in stock., and Ben Levine, Andrew Manuel and Stefan Renold of LMR Partners was right behind this move, as the fund said goodbye to about $0.1 million worth. These transactions are interesting, as aggregate hedge fund interest was cut by 2 funds at the end of the year.
How have insiders been trading Cardionet Inc (NASDAQ:BEAT)?
Insider trading activity, especially when it’s bullish, is particularly usable when the primary stock in question has experienced transactions within the past six months. Over the last half-year time frame, Cardionet Inc (NASDAQ:BEAT) has seen 1 unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Cardionet Inc (NASDAQ:BEAT). These stocks are American Shared Hospital Services (NYSEAMEX:AMS), American Caresource Holdings, Inc. (NASDAQ:ANCI), U.S. Physical Therapy, Inc. (NYSE:USPH), The Providence Service Corporation (NASDAQ:PRSC), and Hooper Holmes, Inc. (NYSEAMEX:HH). This group of stocks are in the specialized health services industry and their market caps match BEAT’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| American Shared Hospital Services (NYSEAMEX:AMS) | 1 | 0 | 0 |
| American Caresource Holdings, Inc. (NASDAQ:ANCI) | 1 | 0 | 0 |
| U.S. Physical Therapy, Inc. (NYSE:USPH) | 5 | 1 | 2 |
| The Providence Service Corporation (NASDAQ:PRSC) | 5 | 1 | 3 |
| Hooper Holmes, Inc. (NYSEAMEX:HH) | 4 | 0 | 0 |
With the results demonstrated by our time-tested strategies, retail investors must always keep an eye on hedge fund and insider trading sentiment, and Cardionet Inc (NASDAQ:BEAT) is no exception.
