Globus Medical Inc (NYSE:GMED) has experienced an increase in hedge fund interest of late.
In the eyes of most traders, hedge funds are seen as slow, old financial vehicles of years past. While there are over 8000 funds with their doors open today, we at Insider Monkey look at the leaders of this club, around 450 funds. It is estimated that this group has its hands on the lion’s share of the hedge fund industry’s total asset base, and by paying attention to their top stock picks, we have come up with a number of investment strategies that have historically outpaced the S&P 500 index. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per annum 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 outpaced the S&P 500 index by 23.3 percentage points in 8 months (see all of our picks from August).
Just as integral, optimistic insider trading activity is another way to break down the investments you’re interested in. Just as you’d expect, there are plenty of incentives for a corporate insider to get rid of shares of his or her company, but just one, very clear reason why they would behave bullishly. Several empirical studies have demonstrated the impressive potential of this strategy if you know what to do (learn more here).
Now, we’re going to take a peek at the latest action regarding Globus Medical Inc (NYSE:GMED).
Hedge fund activity in Globus Medical Inc (NYSE:GMED)
At Q1’s end, a total of 12 of the hedge funds we track were long in this stock, a change of 71% from the previous quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings significantly.
According to our comprehensive database, Cardinal Capital, managed by Amy Minella, holds the most valuable position in Globus Medical Inc (NYSE:GMED). Cardinal Capital has a $13.3 million position in the stock, comprising 0.8% of its 13F portfolio. The second largest stake is held by Royce & Associates, managed by Chuck Royce, which held a $12.6 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other peers that hold long positions include SAC Subsidiary’s CR Intrinsic Investors, Jeremy Green’s Redmile Group and Steven Cohen’s SAC Capital Advisors.
Consequently, specific money managers were breaking ground themselves. Cardinal Capital, managed by Amy Minella, initiated the largest position in Globus Medical Inc (NYSE:GMED). Cardinal Capital had 13.3 million invested in the company at the end of the quarter. Jeremy Green’s Redmile Group also initiated a $8 million position during the quarter. The other funds with new positions in the stock are Scott Burney’s Bluefin Investment Management, Kevin Kotler’s Broadfin Capital, and D. E. Shaw’s D E Shaw.
Insider trading activity in Globus Medical Inc (NYSE:GMED)
Insider purchases made by high-level executives is most useful when the company in focus has experienced transactions within the past 180 days. Over the latest 180-day time frame, Globus Medical Inc (NYSE:GMED) has seen zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).
Let’s also take a look at 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). All of these stocks are in the medical appliances & equipment industry and their market caps match GMED’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| ArthroCare Corporation (NASDAQ:ARTC) | 23 | 0 | 1 |
| Mine Safety Appliances (NYSE:MSA) | 17 | 0 | 6 |
| Masimo Corporation (NASDAQ:MASI) | 17 | 0 | 1 |
| Volcano Corporation (NASDAQ:VOLC) | 18 | 1 | 7 |
| Cyberonics, Inc. (NASDAQ:CYBX) | 25 | 5 | 13 |
With the returns shown by our strategies, retail investors must always watch hedge fund and insider trading sentiment, and Globus Medical Inc (NYSE:GMED) is an important part of this process.
