Insulet Corporation (NASDAQ:PODD) was in 14 hedge funds’ portfolio at the end of the first quarter of 2013. PODD has experienced an increase in support from the world’s most elite money managers of late. There were 8 hedge funds in our database with PODD holdings at the end of the previous quarter.
In the 21st century investor’s toolkit, there are plenty of indicators market participants can use to track stocks. Two of the best are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite fund managers can beat their index-focused peers by a significant amount (see just how much).
Equally as beneficial, positive insider trading activity is another way to break down the investments you’re interested in. There are a number of motivations for a corporate insider to cut shares of his or her company, but only one, very simple reason why they would initiate a purchase. Several empirical studies have demonstrated the useful potential of this method if you understand where to look (learn more here).
Now, we’re going to take a glance at the recent action encompassing Insulet Corporation (NASDAQ:PODD).
How are hedge funds trading Insulet Corporation (NASDAQ:PODD)?
At the end of the first quarter, a total of 14 of the hedge funds we track were bullish in this stock, a change of 75% from one quarter earlier. With hedgies’ sentiment swirling, there exists a few notable hedge fund managers who were increasing their holdings considerably.
Of the funds we track, Samuel Isaly’s OrbiMed Advisors had the most valuable position in Insulet Corporation (NASDAQ:PODD), worth close to $69.9 million, comprising 1.6% of its total 13F portfolio. The second largest stake is held by Cupps Capital Management, managed by Drew Cupps, which held a $20.3 million position; the fund has 2% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Jeremy Green’s Redmile Group, Mariko Gordon’s Daruma Asset Management and Brian Ashford-Russell and Tim Woolley’s Polar Capital.
As aggregate interest increased, key hedge funds were leading the bulls’ herd. OrbiMed Advisors, managed by Samuel Isaly, created the most outsized position in Insulet Corporation (NASDAQ:PODD). OrbiMed Advisors had 69.9 million invested in the company at the end of the quarter. Jeremy Green’s Redmile Group also made a $17.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Mariko Gordon’s Daruma Asset Management, Kevin Kotler’s Broadfin Capital, and Jim Simons’s Renaissance Technologies.
How are insiders trading Insulet Corporation (NASDAQ:PODD)?
Insider purchases made by high-level executives is particularly usable when the company in question has experienced transactions within the past 180 days. Over the latest 180-day time frame, Insulet Corporation (NASDAQ:PODD) has experienced zero unique insiders purchasing, and 4 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Insulet Corporation (NASDAQ:PODD). These stocks are Hill-Rom Holdings, Inc. (NYSE:HRC), Endologix, Inc. (NASDAQ:ELGX), Integra Lifesciences Holdings Corp (NASDAQ:IART), DexCom, Inc. (NASDAQ:DXCM), and HeartWare International Inc (NASDAQ:HTWR). This group of stocks are the members of the medical instruments & supplies industry and their market caps resemble PODD’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Hill-Rom Holdings, Inc. (NYSE:HRC) | 14 | 0 | 4 |
| Endologix, Inc. (NASDAQ:ELGX) | 14 | 0 | 5 |
| Integra Lifesciences Holdings Corp (NASDAQ:IART) | 13 | 0 | 1 |
| DexCom, Inc. (NASDAQ:DXCM) | 19 | 1 | 8 |
| HeartWare International Inc (NASDAQ:HTWR) | 19 | 0 | 10 |
With the returns shown by our tactics, retail investors must always keep an eye on hedge fund and insider trading sentiment, and Insulet Corporation (NASDAQ:PODD) is an important part of this process.
