ABIOMED, Inc. (NASDAQ:ABMD) has seen a decrease in activity from the world’s largest hedge funds recently.
In the 21st century investor’s toolkit, there are many gauges investors can use to analyze stocks. A pair of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best investment managers can outclass the S&P 500 by a solid amount (see just how much).
Just as beneficial, optimistic insider trading activity is another way to break down the investments you’re interested in. As the old adage goes: there are plenty of reasons for a corporate insider to downsize shares of his or her company, but just one, very simple reason why they would buy. Plenty of academic studies have demonstrated the market-beating potential of this tactic if you understand what to do (learn more here).
With these “truths” under our belt, we’re going to take a peek at the recent action encompassing ABIOMED, Inc. (NASDAQ:ABMD).
What have hedge funds been doing with ABIOMED, Inc. (NASDAQ:ABMD)?
At year’s end, a total of 12 of the hedge funds we track were long in this stock, a change of -25% from one quarter earlier. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their stakes meaningfully.
Of the funds we track, William Leland Edwards’s Palo Alto Investors had the biggest position in ABIOMED, Inc. (NASDAQ:ABMD), worth close to $24 million, comprising 2.8% of its total 13F portfolio. Coming in second is Millennium Management, managed by Israel Englander, which held a $9 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining hedge funds that hold long positions include Phill Gross and Robert Atchinson’s Adage Capital Management, Kevin Kotler’s Broadfin Capital and SAC Subsidiary’s CR Intrinsic Investors.
Since ABIOMED, Inc. (NASDAQ:ABMD) has witnessed bearish sentiment from the entirety of the hedge funds we track, we can see that there was a specific group of hedgies that slashed their entire stakes last quarter. Interestingly, Scott Burney’s Bluefin Investment Management said goodbye to the largest investment of the 450+ funds we monitor, totaling an estimated $7 million in stock., and Drew Cupps of Cupps Capital Management was right behind this move, as the fund cut about $6 million worth. These transactions are intriguing to say the least, as total hedge fund interest was cut by 4 funds last quarter.
Insider trading activity in ABIOMED, Inc. (NASDAQ:ABMD)
Bullish insider trading is particularly usable when the company in question has seen transactions within the past 180 days. Over the latest six-month time period, ABIOMED, Inc. (NASDAQ:ABMD) has seen 1 unique insiders buying, and 1 insider sales (see the details of insider trades here).
With the returns shown by Insider Monkey’s time-tested strategies, retail investors should always watch hedge fund and insider trading activity, and ABIOMED, Inc. (NASDAQ:ABMD) shareholders fit into this picture quite nicely.
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