Is Stryker Corporation (NYSE:SYK) going to take off soon? Prominent investors are becoming less confident. The number of long hedge fund positions went down by 7 in recent months.
In the eyes of most investors, hedge funds are assumed to be slow, old financial vehicles of the past. While there are greater than 8000 funds with their doors open at present, we hone in on the moguls of this group, close to 450 funds. Most estimates calculate that this group controls most of the hedge fund industry’s total asset base, and by monitoring their top stock picks, we have determined a number of investment strategies that have historically beaten the market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 23.3 percentage points in 8 months (see all of our picks from August).
With all of this in mind, let’s take a look at the recent action surrounding Stryker Corporation (NYSE:SYK).
How have hedgies been trading Stryker Corporation (NYSE:SYK)?
Heading into Q2, a total of 27 of the hedge funds we track were long in this stock, a change of -21% from the first quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings meaningfully.
According to our comprehensive database, Yacktman Asset Management, managed by Donald Yacktman, holds the largest position in Stryker Corporation (NYSE:SYK). Yacktman Asset Management has a $787.4 million position in the stock, comprising 4% of its 13F portfolio. Coming in second is Phill Gross and Robert Atchinson of Adage Capital Management, with a $95.7 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Cliff Asness’s AQR Capital Management, Israel Englander’s Millennium Management and Anand Parekh’s Alyeska Investment Group.
Judging by the fact that Stryker Corporation (NYSE:SYK) has faced falling interest from the smart money, it’s safe to say that there were a few hedgies that slashed their full holdings at the end of the first quarter. It’s worth mentioning that Stephen DuBois’s Camber Capital Management said goodbye to the largest position of the 450+ funds we key on, totaling an estimated $35.6 million in stock.. Jeremy Green’s fund, Redmile Group, also sold off its stock, about $21.8 million worth. These moves are interesting, as aggregate hedge fund interest was cut by 7 funds at the end of the first quarter.
What have insiders been doing with Stryker Corporation (NYSE:SYK)?
Bullish insider trading is most useful when the company in focus has experienced transactions within the past half-year. Over the latest six-month time frame, Stryker Corporation (NYSE:SYK) has seen 1 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 Stryker Corporation (NYSE:SYK). These stocks are Abbott Laboratories (NYSE:ABT), St. Jude Medical, Inc. (NYSE:STJ), Medtronic, Inc. (NYSE:MDT), Zimmer Holdings, Inc. (NYSE:ZMH), and Intuitive Surgical, Inc. (NASDAQ:ISRG). All of these stocks are in the medical appliances & equipment industry and their market caps are closest to SYK’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Abbott Laboratories (NYSE:ABT) | 31 | 1 | 10 |
| St. Jude Medical, Inc. (NYSE:STJ) | 27 | 0 | 11 |
| Medtronic, Inc. (NYSE:MDT) | 34 | 0 | 0 |
| Zimmer Holdings, Inc. (NYSE:ZMH) | 31 | 0 | 8 |
| Intuitive Surgical, Inc. (NASDAQ:ISRG) | 35 | 0 | 7 |
With the returns exhibited by the aforementioned tactics, retail investors must always keep an eye on hedge fund and insider trading sentiment, and Stryker Corporation (NYSE:SYK) is no exception.
