Is Teleflex Incorporated (TFX) Going to Burn These Hedge Funds?

Should smart Teleflex Incorporated (NYSE:TFX) investors be tracking the following data?

In the 21st century investor’s toolkit, there are many gauges investors can use to monitor publicly traded companies. A duo of the most underrated are hedge fund and insider trading sentiment. 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 healthy amount (see just how much).

Just as key, optimistic insider trading activity is a second way to look at the world of equities. Obviously, there are many stimuli for a corporate insider to cut shares of his or her company, but just one, very simple reason why they would behave bullishly. Various empirical studies have demonstrated the impressive potential of this method if investors know where to look (learn more here).

Now that that’s out of the way, it’s important to study the latest info surrounding Teleflex Incorporated (NYSE:TFX).

What have hedge funds been doing with Teleflex Incorporated (NYSE:TFX)?

At the end of the second quarter, a total of 15 of the hedge funds we track held long positions in this stock, a change of 7% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their holdings substantially.

Out of the hedge funds we follow, John Osterweis’s Osterweis Capital Management had the most valuable position in Teleflex Incorporated (NYSE:TFX), worth close to $79.1 million, comprising 3% of its total 13F portfolio. Sitting at the No. 2 spot is Ken Griffin of Citadel Investment Group, with a $38.8 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other peers with similar optimism include Martin Whitman’s Third Avenue Management, Chuck Royce’s Royce & Associates and D. E. Shaw’s D E Shaw.

As industrywide interest increased, particular hedge funds have jumped into Teleflex Incorporated (NYSE:TFX) headfirst. Osterweis Capital Management, managed by John Osterweis, established the most valuable position in Teleflex Incorporated (NYSE:TFX). Osterweis Capital Management had 79.1 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $52.1 million position during the quarter. The other funds with new positions in the stock are Ken Griffin’s Citadel Investment Group, Martin Whitman’s Third Avenue Management, and Chuck Royce’s Royce & Associates.

Insider trading activity in Teleflex Incorporated (NYSE:TFX)

Insider buying made by high-level executives is most useful when the company in focus has seen transactions within the past six months. Over the latest half-year time period, Teleflex Incorporated (NYSE:TFX) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll check out the relationship between both of these indicators in other stocks similar to Teleflex Incorporated (NYSE:TFX). These stocks are Haemonetics Corporation (NYSE:HAE), Thoratec Corporation (NASDAQ:THOR), West Pharmaceutical Services Inc. (NYSE:WST), The Cooper Companies, Inc. (NYSE:COO), and Mindray Medical International Ltd (ADR) (NYSE:MR). This group of stocks belong to the medical instruments & supplies industry and their market caps resemble TFX’s market cap.

Using the results demonstrated by Insider Monkey’s research, regular investors must always pay attention to hedge fund and insider trading activity, and Teleflex Incorporated (NYSE:TFX) applies perfectly to this mantra.

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