Should Wright Medical Group Inc (NASDAQ:WMGI) track the following data?
In the financial world, there are plenty of indicators investors can use to watch stocks. A pair of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best money managers can outperform the broader indices by a healthy margin (see just how much).
Equally as crucial, positive insider trading activity is another way to analyze the marketplace. Obviously, there are a variety of motivations for an executive to sell shares of his or her company, but only one, very simple reason why they would initiate a purchase. Several empirical studies have demonstrated the valuable potential of this strategy if piggybackers understand what to do (learn more here).
Keeping this in mind, we're going to discuss the latest info for Wright Medical Group Inc (NASDAQ:WMGI).
At the end of the second quarter, a total of 27 of the hedge funds we track were bullish in this stock, a change of 4% from the first quarter. With hedge funds' capital changing hands, there exists an "upper tier" of noteworthy hedge fund managers who were increasing their stakes considerably.
Out of the hedge funds we follow, Arthur B Cohen and Joseph Healey's Healthcor Management LP had the largest position in Wright Medical Group Inc (NASDAQ:WMGI), worth close to $72.7 million, comprising 4.4% of its total 13F portfolio. Sitting at the No. 2 spot is Fisher Asset Management, managed by Ken Fisher, which held a $65.4 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Remaining peers that are bullish include Roberto Mignone's Bridger Management, Stephen DuBois's Camber Capital Management and Jacob Gottlieb's Visium Asset Management.
As industrywide interest increased, certain money managers were breaking ground themselves. Healthcor Management LP, managed by Arthur B Cohen and Joseph Healey, initiated the most outsized position in Wright Medical Group Inc (NASDAQ:WMGI). Healthcor Management LP had 72.7 million invested in the company at the end of the quarter. Ken Fisher's Fisher Asset Management also initiated a $65.4 million position during the quarter. The other funds with brand new WMGI positions are Roberto Mignone's Bridger Management, Stephen DuBois's Camber Capital Management, and Jacob Gottlieb's Visium Asset Management.
Legal insider trading, particularly when it's bullish, is most useful when the company we're looking at has experienced transactions within the past six months. Over the latest six-month time period, Wright Medical Group Inc (NASDAQ:WMGI) has experienced zero unique insiders buying, 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 Wright Medical Group Inc (NASDAQ:WMGI). These stocks are Volcano Corporation (NASDAQ:VOLC), Masimo Corporation (NASDAQ:MASI), ArthroCare Corporation (NASDAQ:ARTC), CONMED Corporation (NASDAQ:CNMD), and NuVasive, Inc. (NASDAQ:NUVA). This group of stocks are the members of the medical appliances & equipment industry and their market caps are closest to WMGI's market cap.