Phill Gross And Robert Atchinson‘s Adage Capital Management has raised its exposure to Heartware International, Inc. (NASDAQ:HTWR) to 836,190 shares, from 688,952 shares held at the end of September, as revealed in the fund’s latest 13G. Adage Capital Management currently owns 5.07% of the company’s common stock. Heartware International was trading at $73 at the end of September and gained 30% since then. Despite the large increase in price, Adage Capital boosted its position which is now valued at more than $75 million.
Insider selling in Heartware International, Inc. (NASDAQ:HTWR) has increased considerably as there were 12 transactions of selling by Director Godshall and 6 transactions from Officer Larose. These aren’t necessarily negative indicators though. Insiders usually want to diversify their exposure and sell after the release of good news (as you can guess this is a legal way of exploiting their inside information).
The stock has also seen investments from other hedge funds largely in the form of convertible notes, with only one hedge fund, apart from Adage Capital holding long position – Matthew Halbower’s Pentwater Capital Management. The company holds 3.6 million shares valued at $2.6 million, besides nearly 15 million in bonds as well. Other hedge funds holding positions in Heartware International, Inc. (NASDAQ:HTWR) include Ken Griffin’s Citadel Investment Group (205 thousand shares valued at $15 million) and Jeremy Green’s Redmile Group which holds 185 thousand shares valued at $13 million.
Next gen heartpump drives stock investments
At its ‘heart,’ Heartware International is a medical device company which specializes in the manufacture of delectable heart pumps which are easy to implant, and aid advanced conditions of heart failure.
One of the products the company produces is a Left Ventricular Assist Device (LVAD) – called the ‘HeartWare System, ’- which essentially offers a parallel blood circulation, when most other treatment systems have failed. The success of this system is the ’blood pump’ which can continuously pump over 10 litres of blood in a minute.
Now, Heartware International, Inc. (NASDAQ:HTWR) is also looking at the next generation miniature heart pump called the Miniaturized Ventricular Assist Device. These are nearly 30% smaller in size than the earlier pumps and can be installed with lesser medical incisions as well. Besides, these will pump blood based on the axial flow, rather than the centrifugal flow, which is the current system.
Heartware International, Inc. (NASDAQ:HTWR) has strengthened its portfolio by acquiring CircuLite, makers of devices which bring mobility to heart patients, usually in the initial stages of heart failure. This acquisition will help Hearware fill the massive demand for heart treatment support, where the patient is not yet ready for LVAD implants.