Mindray Medical International Ltd (ADR) (NYSE:MR) was in 10 hedge funds’ portfolio at the end of the fourth quarter of 2012. MR shareholders have witnessed a decrease in enthusiasm from smart money in recent months. There were 12 hedge funds in our database with MR holdings at the end of the previous quarter.
In the eyes of most stock holders, hedge funds are assumed to be slow, outdated investment tools of years past. While there are more than 8000 funds in operation at the moment, we at Insider Monkey look at the masters of this group, close to 450 funds. It is estimated that this group controls the lion’s share of the smart money’s total asset base, and by watching their top picks, we have deciphered a number of investment strategies that have historically beaten Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 24 percentage points in 7 months (see the details here).
Equally as key, positive insider trading sentiment is another way to parse down the world of equities. Obviously, there are many reasons for a bullish insider to downsize shares of his or her company, but only one, very clear reason why they would behave bullishly. Many empirical studies have demonstrated the useful potential of this tactic if you understand where to look (learn more here).
With all of this in mind, we’re going to take a glance at the key action regarding Mindray Medical International Ltd (ADR) (NYSE:MR).
Hedge fund activity in Mindray Medical International Ltd (ADR) (NYSE:MR)
In preparation for this year, a total of 10 of the hedge funds we track held long positions in this stock, a change of -17% from the previous quarter. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were boosting their holdings substantially.
When looking at the hedgies we track, William B. Gray’s Orbis Investment Management had the biggest position in Mindray Medical International Ltd (ADR) (NYSE:MR), worth close to $200.5 million, comprising 2% of its total 13F portfolio. The second largest stake is held by Eric Mindich of Eton Park Capital, with a $76.2 million position; the fund has 1.6% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include David Blood and Al Gore’s Generation Investment Management, Jim Simons’s Renaissance Technologies and J. Alan Reid, Jr.’s Forward Management.
Seeing as Mindray Medical International Ltd (ADR) (NYSE:MR) has experienced a declination in interest from the entirety of the hedge funds we track, logic holds that there exists a select few hedge funds who were dropping their full holdings last quarter. It’s worth mentioning that John Kleinheinz’s Kleinheinz Capital Partners dropped the largest investment of the “upper crust” of funds we track, valued at an estimated $9.4 million in stock., and Israel Englander of Millennium Management was right behind this move, as the fund sold off about $9.2 million worth. These moves are interesting, as aggregate hedge fund interest dropped by 2 funds last quarter.
Insider trading activity in Mindray Medical International Ltd (ADR) (NYSE:MR)
Bullish insider trading is at its handiest when the primary stock in question has experienced transactions within the past 180 days. Over the last six-month time period, Mindray Medical International Ltd (ADR) (NYSE:MR) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Mindray Medical International Ltd (ADR) (NYSE:MR). These stocks are C.R. Bard, Inc. (NYSE:BCR), CareFusion Corporation (NYSE:CFN), Teleflex Incorporated (NYSE:TFX), DENTSPLY International Inc. (NASDAQ:XRAY), and The Cooper Companies, Inc. (NYSE:COO). This group of stocks belong to the medical instruments & supplies industry and their market caps match MR’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| C.R. Bard, Inc. (NYSE:BCR) | 26 | 0 | 14 |
| CareFusion Corporation (NYSE:CFN) | 28 | 0 | 5 |
| Teleflex Incorporated (NYSE:TFX) | 16 | 0 | 0 |
| DENTSPLY International Inc. (NASDAQ:XRAY) | 8 | 0 | 5 |
| The Cooper Companies, Inc. (NYSE:COO) | 21 | 0 | 12 |
With the returns shown by our tactics, everyday investors should always monitor hedge fund and insider trading sentiment, and Mindray Medical International Ltd (ADR) (NYSE:MR) applies perfectly to this mantra.
