Should You Buy The Female Health Company (FHCO)?

The Female Health Company (NASDAQ:FHCO) was in 7 hedge funds’ portfolio at the end of March. FHCO has experienced an increase in support from the world’s most elite money managers of late. There were 6 hedge funds in our database with FHCO positions at the end of the previous quarter.

To the average investor, there are tons of indicators market participants can use to analyze the equity markets. 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 best picks of the top investment managers can outpace their index-focused peers by a solid margin (see just how much).

Just as important, bullish insider trading activity is another way to parse down the investments you’re interested in. There are a variety of stimuli for a corporate insider to sell shares of his or her company, but only one, very obvious reason why they would buy. Several academic studies have demonstrated the valuable potential of this tactic if investors understand what to do (learn more here).

Consequently, it’s important to take a gander at the latest action surrounding The Female Health Company (NASDAQ:FHCO).

Hedge fund activity in The Female Health Company (NASDAQ:FHCO)

At Q1’s end, a total of 7 of the hedge funds we track were long in this stock, a change of 17% from the previous quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of key hedge fund managers who were increasing their stakes significantly.

When looking at the hedgies we track, Bares Capital Management, managed by Brian Bares, holds the most valuable position in The Female Health Company (NASDAQ:FHCO). Bares Capital Management has a $29.9 million position in the stock, comprising 3.8% of its 13F portfolio. The second largest stake is held by Royce & Associates, managed by Chuck Royce, which held a $3.8 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining hedge funds with similar optimism include Robert B. Gillam’s McKinley Capital Management, Jim Simons’s Renaissance Technologies and Israel Englander’s Millennium Management.

Now, some big names have been driving this bullishness. Millennium Management, managed by Israel Englander, established the biggest position in The Female Health Company (NASDAQ:FHCO). Millennium Management had 0.2 million invested in the company at the end of the quarter. Matthew Hulsizer’s PEAK6 Capital Management also made a $0 million investment in the stock during the quarter.

Insider trading activity in The Female Health Company (NASDAQ:FHCO)

Insider buying is at its handiest when the company we’re looking at has experienced transactions within the past 180 days. Over the last 180-day time frame, The Female Health Company (NASDAQ:FHCO) has experienced 1 unique insiders purchasing, and 4 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 The Female Health Company (NASDAQ:FHCO). These stocks are Summer Infant, Inc. (NASDAQ:SUMR), Inter Parfums, Inc. (NASDAQ:IPAR), Blyth, Inc. (NYSE:BTH), and Nutraceutical Int’l Corp. (NASDAQ:NUTR). This group of stocks belong to the personal products industry and their market caps match FHCO’s market cap.