Endologix, Inc. (ELGX): Are Hedge Funds Right About This Stock?

Endologix, Inc. (NASDAQ:ELGX) investors should be aware of an increase in support from the world’s most elite money managers lately.

At the moment, there are tons of metrics shareholders can use to watch publicly traded companies. Some of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite fund managers can trounce the S&P 500 by a very impressive amount (see just how much).

Just as key, positive insider trading sentiment is another way to break down the financial markets. As the old adage goes: there are a number of stimuli for a corporate insider to cut shares of his or her company, but only one, very simple reason why they would initiate a purchase. Various empirical studies have demonstrated the market-beating potential of this tactic if investors know where to look (learn more here).

With these “truths” under our belt, it’s important to take a look at the key action surrounding Endologix, Inc. (NASDAQ:ELGX).

Hedge fund activity in Endologix, Inc. (NASDAQ:ELGX)

Heading into Q2, a total of 14 of the hedge funds we track held long positions in this stock, a change of 17% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings meaningfully.

When looking at the hedgies we track, Columbus Circle Investors, managed by Donald Chiboucis, holds the largest position in Endologix, Inc. (NASDAQ:ELGX). Columbus Circle Investors has a $19.5 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by Roberto Mignone of Bridger Management, with a $12.1 million position; the fund has 0.8% of its 13F portfolio invested in the stock. Remaining hedge funds that are bullish include Phill Gross and Robert Atchinson’s Adage Capital Management, Jay Venkatesen’s Ayer Capital Management and Brian Ashford-Russell and Tim Woolley’s Polar Capital.

As aggregate interest increased, key money managers have jumped into Endologix, Inc. (NASDAQ:ELGX) headfirst. Balyasny Asset Management, managed by Dmitry Balyasny, assembled the most valuable position in Endologix, Inc. (NASDAQ:ELGX). Balyasny Asset Management had 1.6 million invested in the company at the end of the quarter. James Dondero’s Highland Capital Management also initiated a $0.5 million position during the quarter.

What have insiders been doing with Endologix, Inc. (NASDAQ:ELGX)?

Bullish insider trading is best served when the company in focus has seen transactions within the past six months. Over the latest half-year time frame, Endologix, Inc. (NASDAQ:ELGX) has experienced zero unique insiders buying, and 5 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Endologix, Inc. (NASDAQ:ELGX). These stocks are Tornier N.V. (NASDAQ:TRNX), Cantel Medical Corp. (NYSE:CMN), ICU Medical, Incorporated (NASDAQ:ICUI), DexCom, Inc. (NASDAQ:DXCM), and Integra Lifesciences Holdings Corp (NASDAQ:IART). This group of stocks are the members of the medical instruments & supplies industry and their market caps resemble ELGX’s market cap.