EnteroMedics Inc (ETRM): Are Hedge Funds Right About This Stock?

Page 1 of 2

Is EnteroMedics Inc (NASDAQ:ETRM) a buy here? Prominent investors are getting more optimistic. The number of long hedge fund positions inched up by 1 in recent months.

EnteroMedics Inc (NASDAQ:ETRM)

To most traders, hedge funds are seen as unimportant, outdated investment vehicles of yesteryear. While there are greater than 8000 funds with their doors open today, we hone in on the moguls of this group, about 450 funds. It is widely believed that this group oversees the majority of the smart money’s total asset base, and by keeping an eye on their top investments, we have determined a few investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 24 percentage points in 7 months (check out a sample of our picks).

Equally as key, bullish insider trading activity is a second way to parse down the marketplace. Obviously, there are a number of reasons for an insider to get rid of shares of his or her company, but just one, very simple reason why they would initiate a purchase. Various academic studies have demonstrated the market-beating potential of this method if investors understand what to do (learn more here).

Keeping this in mind, it’s important to take a look at the recent action encompassing EnteroMedics Inc (NASDAQ:ETRM).

What does the smart money think about EnteroMedics Inc (NASDAQ:ETRM)?

At the end of the fourth quarter, a total of 6 of the hedge funds we track were bullish in this stock, a change of 20% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their holdings significantly.

Consequently, specific money managers were breaking ground themselves. Citadel Investment Group, managed by Ken Griffin, created the biggest position in EnteroMedics Inc (NASDAQ:ETRM). Citadel Investment Group had $0.1 million invested in the company at the end of the quarter. Joseph Edelman’s Perceptive Advisors also made a $0.1 million investment in the stock during the quarter.

How have insiders been trading EnteroMedics Inc (NASDAQ:ETRM)?

Insider buying is best served when the company in focus has experienced transactions within the past half-year. Over the latest six-month time frame, EnteroMedics Inc (NASDAQ:ETRM) has experienced 2 unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to EnteroMedics Inc (NASDAQ:ETRM). These stocks are Digirad Corporation (NASDAQ:DRAD), Vision-Sciences, Inc. (NASDAQ:VSCI), Theragenics Corporation (NYSE:TGX), Span-America Medical Systems, Inc. (NASDAQ:SPAN), and Uroplasty, Inc. (NASDAQ:UPI). This group of stocks are the members of the medical appliances & equipment industry and their market caps are similar to ETRM’s market cap.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Lists

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 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

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!