Hedge Funds Are Betting On OSI Systems, Inc. (OSIS)

Now, according to many investors, hedge funds are viewed as delayed, old financial tools of a period lost to current times. Although there are In excess of 8,000 hedge funds in operation in present day, Insider Monkey focuses on the leaders of this group, around 525 funds. It is assumed that this group oversees the majority of the smart money’s total capital, and by monitoring their best equity investments, we’ve unsheathed a number of investment strategies that have historically beaten the S&P 500. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 33 percentage points in 11 months (find the details here).

Just as crucial, positive insider trading sentiment is a second way to look at the world of equities. There are plenty of reasons for an upper level exec to downsize shares of his or her company, but only one, very clear reason why they would behave bullishly. Several academic studies have demonstrated the useful potential of this tactic if shareholders understand where to look (learn more here).

Thus, we’re going to discuss the latest info for OSI Systems, Inc. (NASDAQ:OSIS).

What have hedge funds been doing with OSI Systems, Inc. (NASDAQ:OSIS)?

Heading into Q3, a total of 15 of the hedge funds we track were long in this stock, a change of 15% from the first quarter. With hedgies’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were upping their holdings significantly.

When using filings from the hedgies we track, Tremblant Capital, managed by Brett Barakett, holds the biggest position in OSI Systems, Inc. (NASDAQ:OSIS). Tremblant Capital has a $103.2 million position in the stock, comprising 4.9% of its 13F portfolio. The second largest stake is held by SAB Capital Management, managed by Brian Jackelow, which held a $56.8 million position; 15.6% of its 13F portfolio is allocated to the company. Other hedgies that are bullish include Brett Barakett’s Tremblant Capital, Malcolm Fairbairn’s Ascend Capital and Steven Cohen’s SAC Capital Advisors.

Now, specific money managers have jumped into OSI Systems, Inc. (NASDAQ:OSIS) headfirst. Tremblant Capital, managed by Brett Barakett, created the biggest position in OSI Systems, Inc. (NASDAQ:OSIS). Tremblant Capital had 103.2 million invested in the company at the end of the quarter. Brian Jackelow’s SAB Capital Management also initiated a $56.8 million position during the quarter. The other funds with brand new OSIS positions are Brett Barakett’s Tremblant Capital, Malcolm Fairbairn’s Ascend Capital, and Steven Cohen’s SAC Capital Advisors.

Insider trading activity in OSI Systems, Inc. (NASDAQ:OSIS)

Insider buying made by high-level executives is most useful when the primary stock in question has seen transactions within the past 180 days. Over the last six-month time frame, OSI Systems, Inc. (NASDAQ:OSIS) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll check out the relationship between both of these indicators in other stocks similar to OSI Systems, Inc. (NASDAQ:OSIS). These stocks are Altra Holdings, Inc. (NASDAQ:AIMC), General Cable Corporation (NYSE:BGC), Franklin Electric Co. (NASDAQ:FELE), GrafTech International Ltd (NYSE:GTI), and Littelfuse, Inc. (NASDAQ:LFUS). This group of stocks are the members of the industrial electrical equipment industry and their market caps match OSIS’s market cap.

Using the results shown by our tactics, average investors must always keep one eye on hedge fund and insider trading sentiment, and OSI Systems, Inc. (NASDAQ:OSIS) applies perfectly to this mantra.

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