Here is What Hedge Funds Think About The Spectranetics Corporation (SPNC)

What’s a smart The Spectranetics Corporation (NASDAQ:SPNC) investor to do?

If you were to ask many of your peers, hedge funds are viewed as overrated, outdated financial tools of an era lost to time. Although there are more than 8,000 hedge funds with their doors open in present day, this site aim at the top tier of this club, about 525 funds. Analysts calculate that this group has its hands on most of all hedge funds’ total capital, and by watching their highest performing picks, we’ve deciphered a number of investment strategies that have historically outperformed the market. 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 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 (see all of our picks from August).

Just as crucial, optimistic insider trading activity is another way to analyze the financial markets. There are many incentives for a bullish insider to get rid of shares of his or her company, but only one, very obvious reason why they would buy. Various empirical studies have demonstrated the impressive potential of this method if shareholders know where to look (learn more here).

Furthermore, we’re going to examine the recent info about The Spectranetics Corporation (NASDAQ:SPNC).

How are hedge funds trading The Spectranetics Corporation (NASDAQ:SPNC)?

In preparation for the third quarter, a total of 18 of the hedge funds we track were bullish in this stock, a change of 50% from one quarter earlier. With the smart money’s sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were upping their holdings meaningfully.

When using filings from the hedgies we track, Richard Driehaus’s Driehaus Capital had the largest position in The Spectranetics Corporation (NASDAQ:SPNC), worth close to $14.6 million, accounting for 0.6% of its total 13F portfolio. Sitting at the No. 2 spot is Brian Ashford-Russell and Tim Woolley of Polar Capital, with a $11 million position; 0.4% of its 13F portfolio is allocated to the company. Remaining peers that are bullish include SAC Subsidiary’s CR Intrinsic Investors, Mark Broach’s Manatuck Hill Partners and Drew Cupps’s Cupps Capital Management.

As aggregate interest spiked, particular hedge funds were leading the bulls’ herd. Driehaus Capital, managed by Richard Driehaus, created the most valuable position in The Spectranetics Corporation (NASDAQ:SPNC). Driehaus Capital had 14.6 million invested in the company at the end of the quarter. Brian Ashford-Russell and Tim Woolley’s Polar Capital also initiated a $11 million position during the quarter. The other funds with brand new SPNC positions are SAC Subsidiary’s CR Intrinsic Investors, Mark Broach’s Manatuck Hill Partners, and Drew Cupps’s Cupps Capital Management.

How have insiders been trading The Spectranetics Corporation (NASDAQ:SPNC)?

Legal insider trading, particularly when it’s bullish, is particularly usable when the primary stock in question has seen transactions within the past six months. Over the latest six-month time frame, The Spectranetics Corporation (NASDAQ:SPNC) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll go over the relationship between both of these indicators in other stocks similar to The Spectranetics Corporation (NASDAQ:SPNC). These stocks are MAKO Surgical Corp. (NASDAQ:MAKO), ABIOMED, Inc. (NASDAQ:ABMD), Greatbatch Inc (NYSE:GB), Orthofix International NV (NASDAQ:OFIX), and NxStage Medical, Inc. (NASDAQ:NXTM). This group of stocks are in the medical appliances & equipment industry and their market caps match SPNC’s market cap.

Using the returns explained by the previously mentioned strategies, regular investors should always pay attention to hedge fund and insider trading activity, and The Spectranetics Corporation (NASDAQ:SPNC) is no exception.

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