Do Hedge Funds and Insiders Love OSI Systems, Inc. (NASDAQ:OSIS)?

OSI Systems, Inc. (NASDAQ:OSIS) was in 17 hedge funds’ portfolio at the end of December. OSIS shareholders have witnessed an increase in enthusiasm from smart money lately. There were 13 hedge funds in our database with OSIS positions at the end of the previous quarter.

OSI Systems Inc. (NASDAQ:OSIS)According to most traders, hedge funds are seen as unimportant, 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 club, about 450 funds. Most estimates calculate that this group oversees the majority of the smart money’s total asset base, and by monitoring their top investments, we have brought to light a number of investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy outperformed 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 trumped the S&P 500 index by 25 percentage points in 6.5 month (see the details here).

Just as integral, optimistic insider trading sentiment is another way to parse down the stock market universe. Obviously, there are a variety of motivations for an executive to downsize shares of his or her company, but only one, very simple reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this method if investors know where to look (learn more here).

With these “truths” under our belt, we’re going to take a peek at the recent action regarding OSI Systems, Inc. (NASDAQ:OSIS).

How have hedgies been trading OSI Systems, Inc. (NASDAQ:OSIS)?

At year’s end, a total of 17 of the hedge funds we track were bullish in this stock, a change of 31% from one quarter earlier. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes substantially.

According to our comprehensive database, Donald Chiboucis’s Columbus Circle Investors had the biggest position in OSI Systems, Inc. (NASDAQ:OSIS), worth close to $24 million, accounting for 0.2% of its total 13F portfolio. Sitting at the No. 2 spot is Malcolm Fairbairn of Ascend Capital, with a $13 million position; 0.7% of its 13F portfolio is allocated to the company. Other peers that are bullish include Jim Simons’s Renaissance Technologies, Ken Fisher’s Fisher Asset Management and Scott Burney’s Bluefin Investment Management.

Consequently, key hedge funds have jumped into OSI Systems, Inc. (NASDAQ:OSIS) headfirst. Manatuck Hill Partners, managed by Mark Broach, assembled the most valuable position in OSI Systems, Inc. (NASDAQ:OSIS). Manatuck Hill Partners had 5 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also initiated a $3 million position during the quarter. The other funds with new positions in the stock are D. E. Shaw’s D E Shaw, John Zaro’s Bourgeon Capital, and Israel Englander’s Millennium Management.

How have insiders been trading OSI Systems, Inc. (NASDAQ:OSIS)?

Insider purchases made by high-level executives is most useful when the company in question has experienced transactions within the past half-year. Over the last half-year time frame, OSI Systems, Inc. (NASDAQ:OSIS) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to OSI Systems, Inc. (NASDAQ:OSIS). These stocks are Altra Holdings, Inc. (NASDAQ:AIMC), General Cable Corporation (NYSE:BGC), Franklin Electric Co. (NASDAQ:FELE), GrafTech International Ltd (NYSE:GTI), and Littelfuse, Inc. (NASDAQ:LFUS). This group of stocks belong to the industrial electrical equipment industry and their market caps are closest to OSIS’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Altra Holdings, Inc. (NASDAQ:AIMC) 9 0 3
General Cable Corporation (NYSE:BGC) 20 0 4
Franklin Electric Co. (NASDAQ:FELE) 7 0 5
GrafTech International Ltd (NYSE:GTI) 21 2 2
Littelfuse, Inc. (NASDAQ:LFUS) 9 0 3

With the returns shown by our strategies, retail investors should always monitor hedge fund and insider trading activity, and OSI Systems, Inc. (NASDAQ:OSIS) is no exception.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 37% between September 2012 and March 2013 versus 12.9% for the S&P 500 index. Try it now by clicking the link above.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

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!