Hedge Funds Are Buying Sirona Dental Systems, Inc. (SIRO)

In the eyes of many traders, hedge funds are assumed to be useless, outdated financial tools of a forgotten age. Although there are over 8,000 hedge funds with their doors open in present day, this site looks at the moguls of this club, about 525 funds. Analysts calculate that this group has its hands on the lion’s share of the hedge fund industry’s total capital, and by monitoring their highest quality picks, we’ve identified a number of investment strategies that have historically outperformed the broader indices. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per year 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 beaten the S&P 500 index by 33 percentage points in 11 months (find the details here).

Just as key, optimistic insider trading sentiment is another way to look at the stock market universe. As the old adage goes: there are plenty of motivations for an insider to drop shares of his or her company, but only one, very simple reason why they would buy. Many academic studies have demonstrated the valuable potential of this tactic if you understand what to do (learn more here).

What’s more, let’s study the latest info about Sirona Dental Systems, Inc. (NASDAQ:SIRO).

What have hedge funds been doing with Sirona Dental Systems, Inc. (NASDAQ:SIRO)?

At the end of the second quarter, a total of 28 of the hedge funds we track were long in this stock, a change of 4% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their holdings meaningfully.

Out of the hedge funds we follow, Ricky Sandler’s Eminence Capital had the biggest position in Sirona Dental Systems, Inc. (NASDAQ:SIRO), worth close to $131.3 million, comprising 3.2% of its total 13F portfolio. On Eminence Capital’s heels is Partner Fund Management, managed by Christopher Medlock James, which held a $64.2 million position; the fund has 1.3% of its 13F portfolio invested in the stock. Remaining hedgies that hold long positions include D. E. Shaw’s D E Shaw, Glenn Russell Dubin’s Highbridge Capital Management and Israel Englander’s Millennium Management.

As industrywide interest increased, specific money managers were breaking ground themselves. Eminence Capital, managed by Ricky Sandler, initiated the largest position in Sirona Dental Systems, Inc. (NASDAQ:SIRO). Eminence Capital had 131.3 million invested in the company at the end of the quarter. Christopher Medlock James’s Partner Fund Management also made a $64.2 million investment in the stock during the quarter. The other funds with brand new SIRO positions are D. E. Shaw’s D E Shaw, Glenn Russell Dubin’s Highbridge Capital Management, and Israel Englander’s Millennium Management.

What do corporate executives and insiders think about Sirona Dental Systems, Inc. (NASDAQ:SIRO)?

Bullish insider trading is best served when the primary stock in question has experienced transactions within the past six months. Over the last six-month time period, Sirona Dental Systems, Inc. (NASDAQ:SIRO) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll also examine the relationship between both of these indicators in other stocks similar to Sirona Dental Systems, Inc. (NASDAQ:SIRO). These stocks are Opko Health Inc. (NYSE:OPK), Techne Corporation (NASDAQ:TECH), ResMed Inc. (NYSE:RMD), Align Technology, Inc. (NASDAQ:ALGN), and Hologic, Inc. (NASDAQ:HOLX). This group of stocks belong to the medical appliances & equipment industry and their market caps are similar to SIRO’s market cap.

Using the returns demonstrated by the previously mentioned studies, average investors should always pay attention to hedge fund and insider trading activity, and Sirona Dental Systems, Inc. (NASDAQ:SIRO) is an important part of this process.

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