In today’s marketplace, there are dozens of indicators investors can use to monitor publicly traded companies. A pair of the most under-the-radar are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can outperform the S&P 500 by a very impressive amount (see just how much).
Just as crucial, bullish insider trading activity is another way to analyze the investments you’re interested in. There are a number of reasons for a bullish insider to downsize shares of his or her company, but only one, very simple reason why they would behave bullishly. Several academic studies have demonstrated the valuable potential of this method if shareholders understand where to look (learn more here).
What’s more, let’s study the latest info for Orthofix International NV (NASDAQ:OFIX).
What have hedge funds been doing with Orthofix International NV (NASDAQ:OFIX)?
Heading into Q3, a total of 15 of the hedge funds we track held long positions in this stock, a change of 25% from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were increasing their holdings significantly.
Out of the hedge funds we follow, Diamond Hill Capital, managed by Ric Dillon, holds the biggest position in Orthofix International NV (NASDAQ:OFIX). Diamond Hill Capital has a $18.4 million position in the stock, comprising 0.2% of its 13F portfolio. On Diamond Hill Capital’s heels is Jay Petschek and Steven Major of Corsair Capital Management, with a $13.4 million position; 1.7% of its 13F portfolio is allocated to the company. Remaining hedgies with similar optimism include Cliff Asness’s AQR Capital Management, Jacob Gottlieb’s Visium Asset Management and David Dreman’s Dreman Value Management.
As industrywide interest increased, particular hedge funds were breaking ground themselves. Diamond Hill Capital, managed by Ric Dillon, created the largest position in Orthofix International NV (NASDAQ:OFIX). Diamond Hill Capital had 18.4 million invested in the company at the end of the quarter. Jay Petschek and Steven Major’s Corsair Capital Management also made a $13.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Cliff Asness’s AQR Capital Management, Jacob Gottlieb’s Visium Asset Management, and David Dreman’s Dreman Value Management.
How have insiders been trading Orthofix International NV (NASDAQ:OFIX)?
Bullish insider trading is particularly usable when the primary stock in question has seen transactions within the past 180 days. Over the latest 180-day time frame, Orthofix International NV (NASDAQ:OFIX) has seen 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 Orthofix International NV (NASDAQ:OFIX). These stocks are MAKO Surgical Corp. (NASDAQ:MAKO), The Spectranetics Corporation (NASDAQ:SPNC), NxStage Medical, Inc. (NASDAQ:NXTM), ABIOMED, Inc. (NASDAQ:ABMD), and Greatbatch Inc (NYSE:GB). This group of stocks belong to the medical appliances & equipment industry and their market caps are closest to OFIX’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| MAKO Surgical Corp. (NASDAQ:MAKO) | 11 | 0 | 0 |
| The Spectranetics Corporation (NASDAQ:SPNC) | 18 | 0 | 0 |
| NxStage Medical, Inc. (NASDAQ:NXTM) | 17 | 0 | 0 |
| ABIOMED, Inc. (NASDAQ:ABMD) | 12 | 0 | 0 |
| Greatbatch Inc (NYSE:GB) | 6 | 0 | 0 |
Using the results explained by our research, regular investors must always keep one eye on hedge fund and insider trading sentiment, and Orthofix International NV (NASDAQ:OFIX) applies perfectly to this mantra.
