GenMark Diagnostics, Inc (NASDAQ:GNMK) was in 7 hedge funds’ portfolio at the end of the fourth quarter of 2012. GNMK has seen an increase in enthusiasm from smart money recently. There were 5 hedge funds in our database with GNMK holdings at the end of the previous quarter.
In today’s marketplace, there are plenty of metrics investors can use to monitor Mr. Market. A couple of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top investment managers can trounce the S&P 500 by a solid amount (see just how much).
Just as key, optimistic insider trading activity is another way to parse down the world of equities. Just as you’d expect, there are a variety of stimuli for a bullish insider to drop shares of his or her company, but just one, very simple reason why they would behave bullishly. Plenty of empirical studies have demonstrated the market-beating potential of this tactic if you understand where to look (learn more here).
With these “truths” under our belt, it’s important to take a glance at the key action regarding GenMark Diagnostics, Inc (NASDAQ:GNMK).
What does the smart money think about GenMark Diagnostics, Inc (NASDAQ:GNMK)?
Heading into 2013, a total of 7 of the hedge funds we track were long in this stock, a change of 40% from the third quarter. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were upping their stakes meaningfully.
According to our comprehensive database, Alyeska Investment Group, managed by Anand Parekh, holds the most valuable position in GenMark Diagnostics, Inc (NASDAQ:GNMK). Alyeska Investment Group has a $5.2 million position in the stock, comprising 0.2% of its 13F portfolio. Coming in second is Richard Driehaus of Driehaus Capital, with a $4.7 million position; 0.2% of its 13F portfolio is allocated to the stock. Some other hedgies that are bullish include Phill Gross and Robert Atchinson’s Adage Capital Management, Charles Davidson’s Wexford Capital and Jim Simons’s Renaissance Technologies.
As aggregate interest increased, key money managers have been driving this bullishness. Wexford Capital, managed by Charles Davidson, initiated the most outsized position in GenMark Diagnostics, Inc (NASDAQ:GNMK). Wexford Capital had 0.7 million invested in the company at the end of the quarter. Mike Vranos’s Ellington also made a $0.1 million investment in the stock during the quarter.
How have insiders been trading GenMark Diagnostics, Inc (NASDAQ:GNMK)?
Insider purchases made by high-level executives is particularly usable when the primary stock in question has experienced transactions within the past six months. Over the last six-month time period, GenMark Diagnostics, Inc (NASDAQ:GNMK) has experienced zero unique insiders buying, and 6 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to GenMark Diagnostics, Inc (NASDAQ:GNMK). These stocks are Cardiovascular Systems Inc (NASDAQ:CSII), Natus Medical Inc (NASDAQ:BABY), Invacare Corporation (NYSE:IVC), Symmetry Medical Inc. (NYSE:SMA), and Cynosure, Inc. (NASDAQ:CYNO). This group of stocks belong to the medical appliances & equipment industry and their market caps resemble GNMK’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Cardiovascular Systems Inc (NASDAQ:CSII) | 6 | 1 | 4 |
| Natus Medical Inc (NASDAQ:BABY) | 15 | 1 | 5 |
| Invacare Corporation (NYSE:IVC) | 14 | 0 | 0 |
| Symmetry Medical Inc. (NYSE:SMA) | 9 | 0 | 2 |
| Cynosure, Inc. (NASDAQ:CYNO) | 14 | 0 | 5 |
With the returns shown by Insider Monkey’s tactics, retail investors should always pay attention to hedge fund and insider trading activity, and GenMark Diagnostics, Inc (NASDAQ:GNMK) is no exception.
