Do Hedge Funds and Insiders Love NuVasive, Inc. (NUVA)?

NuVasive, Inc. (NASDAQ:NUVA) was in 18 hedge funds’ portfolio at the end of March. NUVA investors should be aware of a decrease in hedge fund interest recently. There were 23 hedge funds in our database with NUVA holdings at the end of the previous quarter.

In today’s marketplace, there are a multitude of metrics market participants can use to monitor the equity markets. A couple of the best are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top investment managers can beat the S&P 500 by a solid amount (see just how much).

Equally as beneficial, bullish insider trading sentiment is another way to parse down the investments you’re interested in. As the old adage goes: there are lots of reasons for an upper level exec to drop shares of his or her company, but just one, very simple reason why they would initiate a purchase. Many academic studies have demonstrated the impressive potential of this strategy if investors understand what to do (learn more here).

Consequently, let’s take a peek at the key action regarding NuVasive, Inc. (NASDAQ:NUVA).

What does the smart money think about NuVasive, Inc. (NASDAQ:NUVA)?

At Q1’s end, a total of 18 of the hedge funds we track held long positions in this stock, a change of -22% from the first quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings meaningfully.

When looking at the hedgies we track, AQR Capital Management, managed by Cliff Asness, holds the biggest position in NuVasive, Inc. (NASDAQ:NUVA). AQR Capital Management has a $9.1 million position in the stock, comprising less than 0.1%% of its 13F portfolio. The second largest stake is held by Steven Cohen of SAC Capital Advisors, with a $9 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining peers that hold long positions include Ken Fisher’s Fisher Asset Management, Ken Griffin’s Citadel Investment Group and D. E. Shaw’s D E Shaw.

Due to the fact that NuVasive, Inc. (NASDAQ:NUVA) has faced a declination in interest from the smart money, logic holds that there were a few hedgies that slashed their full holdings heading into Q2. It’s worth mentioning that James E. Flynn’s Deerfield Management dropped the biggest stake of the 450+ funds we key on, comprising close to $29.4 million in stock., and SAC Subsidiary of CR Intrinsic Investors was right behind this move, as the fund sold off about $10.5 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest dropped by 5 funds heading into Q2.

How have insiders been trading NuVasive, Inc. (NASDAQ:NUVA)?

Insider trading activity, especially when it’s bullish, is most useful when the company in question has seen transactions within the past 180 days. Over the latest six-month time frame, NuVasive, Inc. (NASDAQ:NUVA) has experienced 1 unique insiders buying, and 1 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to NuVasive, Inc. (NASDAQ:NUVA). These stocks are Volcano Corporation (NASDAQ:VOLC), Masimo Corporation (NASDAQ:MASI), ArthroCare Corporation (NASDAQ:ARTC), CONMED Corporation (NASDAQ:CNMD), and Wright Medical Group Inc (NASDAQ:WMGI). All of these stocks are in the medical appliances & equipment industry and their market caps are closest to NUVA’s market cap.