Hedge Funds Are Selling Accuray Incorporated (ARAY)

If you were to ask many investors, hedge funds are assumed to be bloated, outdated investment tools of a period lost to current times. Although there are over 8,000 hedge funds in operation today, this site aim at the crème de la crème of this club, around 525 funds. It is widely held that this group oversees the lion’s share of the smart money’s total assets, and by monitoring their highest quality investments, we’ve unearthed a number of investment strategies that have historically outpaced the market. Our small-cap hedge fund strategy beat 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 trumped the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).

Equally as crucial, positive insider trading sentiment is another way to look at the marketplace. Obviously, there are a variety of stimuli for an executive to cut shares of his or her company, but just one, very simple reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the useful potential of this tactic if investors know what to do (learn more here).

Furthermore, let’s study the newest info for Accuray Incorporated (NASDAQ:ARAY).

How are hedge funds trading Accuray Incorporated (NASDAQ:ARAY)?

In preparation for the third quarter, a total of 14 of the hedge funds we track were bullish in this stock, a change of -18% from one quarter earlier. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were increasing their stakes significantly.

Out of the hedge funds we follow, Phill Gross and Robert Atchinson’s Adage Capital Management had the largest position in Accuray Incorporated (NASDAQ:ARAY), worth close to $28.1 million, comprising 0.1% of its total 13F portfolio. The second largest stake is held by Roberto Mignone of Bridger Management, with a $13.8 million position; 1% of its 13F portfolio is allocated to the stock. Remaining hedge funds that hold long positions include Millennium Management Subsidiary’s Decade Capital Management, John Burbank’s Passport Capital and Israel Englander’s Millennium Management.

Judging by the fact that Accuray Incorporated (NASDAQ:ARAY) has witnessed declining interest from upper-tier hedge fund managers, we can see that there was a specific group of money managers that elected to cut their full holdings last quarter. It’s worth mentioning that JΘr⌠me Pfund and Michael Sj÷str÷m’s Sectoral Asset Management said goodbye to the largest stake of all the hedgies we key on, worth an estimated $5.2 million in stock. Jay Venkatesen’s fund, Ayer Capital Management, also said goodbye to its stock, about $2.7 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 3 funds last quarter.

How are insiders trading Accuray Incorporated (NASDAQ:ARAY)?

Bullish insider trading is particularly usable when the company in question has seen transactions within the past half-year. Over the last 180-day time frame, Accuray Incorporated (NASDAQ:ARAY) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll also review the relationship between both of these indicators in other stocks similar to Accuray Incorporated (NASDAQ:ARAY). These stocks are GenMark Diagnostics, Inc (NASDAQ:GNMK), Natus Medical Inc (NASDAQ:BABY), Navidea Biopharmaceuticals Inc (NYSEAMEX:NAVB), Syneron Medical Ltd. (NASDAQ:ELOS), and PhotoMedex Inc (NASDAQ:PHMD). This group of stocks are the members of the medical appliances & equipment industry and their market caps are similar to ARAY’s market cap.

Using the results demonstrated by Insider Monkey’s analyses, average investors should always watch hedge fund and insider trading activity, and Accuray Incorporated (NASDAQ:ARAY) shareholders fit into this picture quite nicely.

Discover how hedge fund piggybacking can benefit you