Is Globus Medical Inc (NYSE:GMED) a splendid investment right now? The smart money is becoming more confident. The number of bullish hedge fund bets improved by 3 lately.
According to most market participants, hedge funds are assumed to be slow, old investment tools of the past. While there are over 8000 funds with their doors open today, we look at the moguls of this club, close to 450 funds. It is estimated that this group controls the majority of the smart money’s total asset base, and by monitoring their top investments, we have discovered a few investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 24 percentage points in 7 months (see all of our picks from August).
Just as key, positive insider trading sentiment is a second way to parse down the world of equities. Just as you’d expect, there are plenty of motivations for an insider to cut shares of his or her company, but just one, very clear reason why they would behave bullishly. Several empirical studies have demonstrated the useful potential of this strategy if shareholders understand where to look (learn more here).
With all of this in mind, we’re going to take a look at the latest action surrounding Globus Medical Inc (NYSE:GMED).
What does the smart money think about Globus Medical Inc (NYSE:GMED)?
In preparation for this year, a total of 7 of the hedge funds we track held long positions in this stock, a change of 75% from the third quarter. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their holdings significantly.
According to our comprehensive database, Chuck Royce’s Royce & Associates had the biggest position in Globus Medical Inc (NYSE:GMED), worth close to $7.9 million, comprising less than 0.1%% of its total 13F portfolio. Coming in second is SAC Subsidiary of CR Intrinsic Investors, with a $3.9 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Israel Englander’s Millennium Management, Steven Cohen’s SAC Capital Advisors and Phill Gross and Robert Atchinson’s Adage Capital Management.
Now, some big names have jumped into Globus Medical Inc (NYSE:GMED) headfirst. CR Intrinsic Investors, managed by SAC Subsidiary, created the largest position in Globus Medical Inc (NYSE:GMED). CR Intrinsic Investors had 3.9 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $2.8 million investment in the stock during the quarter. The following funds were also among the new GMED investors: Steven Cohen’s SAC Capital Advisors, Phill Gross and Robert Atchinson’s Adage Capital Management, and Mike Vranos’s Ellington.
What do corporate executives and insiders think about Globus Medical Inc (NYSE:GMED)?
Insider purchases made by high-level executives is best served when the primary stock in question has experienced transactions within the past half-year. Over the last half-year time frame, Globus Medical Inc (NYSE:GMED) has experienced zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Globus Medical Inc (NYSE:GMED). These stocks are ArthroCare Corporation (NASDAQ:ARTC), Mine Safety Appliances (NYSE:MSA), Masimo Corporation (NASDAQ:MASI), Volcano Corporation (NASDAQ:VOLC), and Cyberonics, Inc. (NASDAQ:CYBX). This group of stocks are in the medical appliances & equipment industry and their market caps are closest to GMED’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| ArthroCare Corporation (NASDAQ:ARTC) | 22 | 0 | 1 |
| Mine Safety Appliances (NYSE:MSA) | 8 | 0 | 6 |
| Masimo Corporation (NASDAQ:MASI) | 9 | 0 | 1 |
| Volcano Corporation (NASDAQ:VOLC) | 13 | 1 | 7 |
| Cyberonics, Inc. (NASDAQ:CYBX) | 18 | 5 | 13 |
With the returns demonstrated by our time-tested strategies, everyday investors should always keep an eye on hedge fund and insider trading sentiment, and Globus Medical Inc (NYSE:GMED) applies perfectly to this mantra.
