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

Should Endologix, Inc. (NASDAQ:ELGX) investors track the following data?

To the average investor, there are tons of methods shareholders can use to watch stocks. 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 best investment managers can outperform the broader indices by a very impressive margin (see just how much).

Just as crucial, bullish insider trading activity is another way to look at the financial markets. Just as you’d expect, there are a number of reasons for a corporate insider to sell shares of his or her company, but only one, very clear reason why they would initiate a purchase. Various empirical studies have demonstrated the market-beating potential of this strategy if shareholders understand what to do (learn more here).

Thus, it’s important to discuss the newest info for Endologix, Inc. (NASDAQ:ELGX).

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

In preparation for the third quarter, a total of 10 of the hedge funds we track held long positions in this stock, a change of -29% from one quarter earlier. With hedgies’ capital changing hands, there exists a few key hedge fund managers who were increasing their holdings meaningfully.

When using filings from 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 $18.6 million position in the stock, comprising 0.1% of its 13F portfolio. Coming in second is Steven Cohen of SAC Capital Advisors, with a $12.1 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedgies that are bullish include Brian Ashford-Russell and Tim Woolley’s Polar Capital, Phill Gross and Robert Atchinson’s Adage Capital Management and SAC Subsidiary’s CR Intrinsic Investors.

Because Endologix, Inc. (NASDAQ:ELGX) has faced declining interest from the smart money’s best and brightest, it’s safe to say that there were a few money managers that decided to sell off their positions entirely at the end of the second quarter. Intriguingly, Roberto Mignone’s Bridger Management sold off the biggest stake of the “upper crust” of funds we monitor, valued at an estimated $12.1 million in stock. Jay Venkatesen’s fund, Ayer Capital Management, also cut its stock, about $9.8 million worth. These transactions are intriguing to say the least, as total hedge fund interest dropped by 4 funds at the end of the second quarter.

What do corporate executives and insiders think about Endologix, Inc. (NASDAQ:ELGX)?

Bullish insider trading is best served when the company in focus has experienced transactions within the past six months. Over the last 180-day time frame, Endologix, Inc. (NASDAQ:ELGX) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll go over the relationship between both of these indicators 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.