Invacare Corporation (NYSE:IVC) investors should pay attention to an increase in hedge fund sentiment recently.
In the 21st century investor’s toolkit, there are dozens of indicators investors can use to watch publicly traded companies. A duo of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top investment managers can outperform the market by a solid margin (see just how much).
Equally as important, positive insider trading activity is a second way to break down the investments you’re interested in. As the old adage goes: there are many motivations for a bullish insider to drop shares of his or her company, but only one, very obvious reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this method if “monkeys” know what to do (learn more here).
Now, it’s important to take a glance at the recent action encompassing Invacare Corporation (NYSE:IVC).
What have hedge funds been doing with Invacare Corporation (NYSE:IVC)?
At the end of the fourth quarter, a total of 14 of the hedge funds we track were bullish in this stock, a change of 8% from the third quarter. With hedgies’ capital changing hands, there exists a few notable hedge fund managers who were upping their holdings significantly.
When looking at the hedgies we track, Point Lobos Capital, managed by Ryan Schaper, holds the biggest position in Invacare Corporation (NYSE:IVC). Point Lobos Capital has a $13 million position in the stock, comprising 9% of its 13F portfolio. On Point Lobos Capital’s heels is Royce & Associates, managed by Chuck Royce, which held a $11 million position; 0% of its 13F portfolio is allocated to the stock. Remaining peers that hold long positions include Cliff Asness’s AQR Capital Management, Jacob Gottlieb’s Visium Asset Management and SAC Subsidiary’s CR Intrinsic Investors.
As one would reasonably expect, some big names were breaking ground themselves. Iridian Asset Management, managed by David Cohen and Harold Levy, established the biggest position in Invacare Corporation (NYSE:IVC). Iridian Asset Management had 0 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also initiated a $0 million position during the quarter.
How are insiders trading Invacare Corporation (NYSE:IVC)?
Insider buying is most useful when the company we’re looking at has experienced transactions within the past 180 days. Over the last six-month time frame, Invacare Corporation (NYSE:IVC) has experienced zero unique insiders purchasing, 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 Invacare Corporation (NYSE:IVC). These stocks are Cardiovascular Systems Inc (NASDAQ:CSII), Natus Medical Inc (NASDAQ:BABY), GenMark Diagnostics, Inc (NASDAQ:GNMK), Cynosure, Inc. (NASDAQ:CYNO), and Symmetry Medical Inc. (NYSE:SMA). All of these stocks are in the medical appliances & equipment industry and their market caps are similar to IVC’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Cardiovascular Systems Inc (NASDAQ:CSII)||6||1||4|
|Natus Medical Inc (NASDAQ:BABY)||15||1||5|
|GenMark Diagnostics, Inc (NASDAQ:GNMK)||7||0||6|
|Cynosure, Inc. (NASDAQ:CYNO)||14||0||5|
|Symmetry Medical Inc. (NYSE:SMA)||9||0||2|
With the returns shown by the aforementioned strategies, everyday investors should always watch hedge fund and insider trading sentiment, and Invacare Corporation (NYSE:IVC) is no exception.