Do Hedge Funds and Insiders Love ResMed Inc. (RMD)?

In today’s marketplace, there are many metrics investors can use to track their holdings. A pair of the most useful are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite investment managers can trounce their index-focused peers by a healthy margin (see just how much).

Equally as necessary, bullish insider trading sentiment is a second way to analyze the investments you’re interested in. Obviously, there are plenty of reasons for an upper level exec to drop shares of his or her company, but just one, very obvious reason why they would behave bullishly. Many empirical studies have demonstrated the valuable potential of this method if you understand what to do (learn more here).

Furthermore, let’s study the recent info for ResMed Inc. (NYSE:RMD).

What does the smart money think about ResMed Inc. (NYSE:RMD)?

At the end of the second quarter, a total of 20 of the hedge funds we track were long in this stock, a change of 100% from the first quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings substantially.

According to our 13F database, Christian Leone’s Luxor Capital Group had the biggest position in ResMed Inc. (NYSE:RMD), worth close to $150.7 million, comprising 4.1% of its total 13F portfolio. The second largest stake is held by Louis Navellier of Navellier & Associates, with a $39 million position; 1.2% of its 13F portfolio is allocated to the company. Remaining hedge funds with similar optimism include Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Cliff Asness’s AQR Capital Management and Anand Parekh’s Alyeska Investment Group.

With a general bullishness amongst the titans, particular hedge funds were breaking ground themselves. Luxor Capital Group, managed by Christian Leone, assembled the most valuable position in ResMed Inc. (NYSE:RMD). Luxor Capital Group had 150.7 million invested in the company at the end of the quarter. Louis Navellier’s Navellier & Associates also made a $39 million investment in the stock during the quarter. The other funds with new positions in the stock are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Cliff Asness’s AQR Capital Management, and Anand Parekh’s Alyeska Investment Group.

How are insiders trading ResMed Inc. (NYSE:RMD)?

Insider buying made by high-level executives is best served when the company we’re looking at has experienced transactions within the past six months. Over the last 180-day time frame, ResMed Inc. (NYSE:RMD) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll also review the relationship between both of these indicators in other stocks similar to ResMed Inc. (NYSE:RMD). These stocks are Sirona Dental Systems, Inc. (NASDAQ:SIRO), Smith & Nephew plc (ADR) (NYSE:SNN), Edwards Lifesciences Corp (NYSE:EW), Varian Medical Systems, Inc. (NYSE:VAR), and Hologic, Inc. (NASDAQ:HOLX). This group of stocks are in the medical appliances & equipment industry and their market caps are closest to RMD’s market cap.

Using the results demonstrated by the previously mentioned analyses, regular investors should always track hedge fund and insider trading sentiment, and ResMed Inc. (NYSE:RMD) applies perfectly to this mantra.

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