Hedge Funds Are Selling Endo Health Solutions Inc (ENDP)

Endo Health Solutions Inc (NASDAQ:ENDP) was in 23 hedge funds’ portfolio at the end of March. ENDP has experienced a decrease in activity from the world’s largest hedge funds recently. There were 23 hedge funds in our database with ENDP holdings at the end of the previous quarter.

In the financial world, there are many metrics shareholders can use to analyze Mr. Market. A duo of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite money managers can outclass the market by a significant amount (see just how much).

Just as integral, bullish insider trading sentiment is a second way to break down the marketplace. Just as you’d expect, there are a number of stimuli for an insider to downsize shares of his or her company, but just one, very simple reason why they would buy. Several empirical studies have demonstrated the impressive potential of this strategy if investors understand what to do (learn more here).

With all of this in mind, let’s take a glance at the recent action surrounding Endo Health Solutions Inc (NASDAQ:ENDP).

What have hedge funds been doing with Endo Health Solutions Inc (NASDAQ:ENDP)?

Heading into Q2, a total of 23 of the hedge funds we track held long positions in this stock, a change of 0% from one quarter earlier. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were boosting their stakes significantly.

Of the funds we track, Jacob Gottlieb’s Visium Asset Management had the most valuable position in Endo Health Solutions Inc (NASDAQ:ENDP), worth close to $138.4 million, comprising 3.6% of its total 13F portfolio. On Visium Asset Management’s heels is Levin Capital Strategies, managed by John A. Levin, which held a $102 million position; the fund has 1.8% of its 13F portfolio invested in the stock. Some other hedge funds that are bullish include Peter Adam Hochfelder’s Brahman Capital, Steven Cohen’s SAC Capital Advisors and Phill Gross and Robert Atchinson’s Adage Capital Management.

Due to the fact that Endo Health Solutions Inc (NASDAQ:ENDP) has faced declining sentiment from hedge fund managers, we can see that there exists a select few money managers who were dropping their full holdings in Q1. Intriguingly, James E. Flynn’s Deerfield Management cut the largest stake of all the hedgies we watch, valued at an estimated $39.1 million in stock.. Jim Simons’s fund, Renaissance Technologies, also cut its stock, about $9.9 million worth. These bearish behaviors are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

How are insiders trading Endo Health Solutions Inc (NASDAQ:ENDP)?

Insider trading activity, especially when it’s bullish, is best served when the company in focus has experienced transactions within the past six months. Over the latest 180-day time frame, Endo Health Solutions Inc (NASDAQ:ENDP) has experienced 1 unique insiders purchasing, and 3 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Endo Health Solutions Inc (NASDAQ:ENDP). These stocks are Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY), Taro Pharmaceutical Industries Ltd. (NYSE:TARO), Cubist Pharmaceuticals Inc (NASDAQ:CBST), United Therapeutics Corporation (NASDAQ:UTHR), and Warner Chilcott Plc (NASDAQ:WCRX). This group of stocks are in the drug manufacturers – other industry and their market caps are closest to ENDP’s market cap.

With the results exhibited by our strategies, everyday investors must always monitor hedge fund and insider trading activity, and Endo Health Solutions Inc (NASDAQ:ENDP) applies perfectly to this mantra.

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