Do Hedge Funds and Insiders Love ArthroCare Corporation (ARTC)?

Page 1 of 2

In the financial world, there are tons of metrics shareholders can use to analyze Mr. Market. A couple of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite money managers can trounce the market by a superb margin (see just how much).

Just as necessary, bullish insider trading sentiment is a second way to look at the marketplace. As the old adage goes: there are a number of motivations for an executive to cut shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Many empirical studies have demonstrated the valuable potential of this strategy if shareholders know what to do (learn more here).

Now that that’s out of the way, we’re going to examine the newest info surrounding ArthroCare Corporation (NASDAQ:ARTC).

ArthroCare Corporation (NASDAQ:ARTC)

How have hedgies been trading ArthroCare Corporation (NASDAQ:ARTC)?

At the end of the second quarter, a total of 23 of the hedge funds we track were long in this stock, a change of 0% from the previous quarter. With hedgies’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their stakes significantly.

According to our 13F database, Arthur B Cohen and Joseph Healey’s Healthcor Management LP had the biggest position in ArthroCare Corporation (NASDAQ:ARTC), worth close to $77.7 million, comprising 4.7% of its total 13F portfolio. Coming in second is SAC Capital Advisors, managed by Steven Cohen, which held a $25.9 million position; 0.1% of its 13F portfolio is allocated to the company. Other hedge funds that are bullish include Sean Cullinan’s Point State Capital, Jim Simons’s Renaissance Technologies and Mario Gabelli’s GAMCO Investors.

As ArthroCare Corporation (NASDAQ:ARTC) has experienced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of fund managers that elected to cut their positions entirely at the end of the second quarter. Interestingly, Peter Kolchinsky’s RA Capital Management said goodbye to the biggest stake of the 450+ funds we monitor, valued at close to $13.5 million in stock. William Leland Edwards’s fund, Palo Alto Investors, also said goodbye to its stock, about $9.6 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

What have insiders been doing with ArthroCare Corporation (NASDAQ:ARTC)?

Legal insider trading, particularly when it’s bullish, is at its handiest when the company in question has seen transactions within the past six months. Over the latest half-year time frame, ArthroCare Corporation (NASDAQ:ARTC) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll also examine the relationship between both of these indicators in other stocks similar to ArthroCare Corporation (NASDAQ:ARTC). These stocks are Volcano Corporation (NASDAQ:VOLC), Masimo Corporation (NASDAQ:MASI), NuVasive, Inc. (NASDAQ:NUVA), Wright Medical Group Inc (NASDAQ:WMGI), and CONMED Corporation (NASDAQ:CNMD). This group of stocks belong to the medical appliances & equipment industry and their market caps match ARTC’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!