Hedge Funds Are Crazy About Masimo Corporation (MASI)

Page 1 of 2

Masimo Corporation (NASDAQ:MASI) shareholders have witnessed an increase in activity from the world’s largest hedge funds recently.

Masimo Corporation (NASDAQ:MASI)

If you’d ask most traders, hedge funds are assumed to be worthless, old investment tools of years past. While there are greater than 8000 funds with their doors open at present, we at Insider Monkey hone in on the upper echelon of this club, around 450 funds. It is estimated that this group oversees the lion’s share of the hedge fund industry’s total capital, and by watching their best equity investments, we have deciphered a number of investment strategies that have historically outpaced Mr. Market. 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 began to sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 23.3 percentage points in 8 months (see the details here).

Equally as integral, optimistic insider trading sentiment is another way to break down the marketplace. As the old adage goes: there are a variety of reasons for an insider to cut shares of his or her company, but only one, very obvious reason why they would buy. Plenty of empirical studies have demonstrated the valuable potential of this method if investors understand what to do (learn more here).

Now, let’s take a gander at the recent action surrounding Masimo Corporation (NASDAQ:MASI).

What have hedge funds been doing with Masimo Corporation (NASDAQ:MASI)?

At Q1′s end, a total of 17 of the hedge funds we track held long positions in this stock, a change of 55% from the first quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were boosting their holdings significantly.

According to our comprehensive database, Stephen DuBois’s Camber Capital Management had the most valuable position in Masimo Corporation (NASDAQ:MASI), worth close to $24.5 million, accounting for 2% of its total 13F portfolio. Coming in second is Millennium Management, managed by Israel Englander, which held a $11.3 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other hedge funds with similar optimism include Jim Simons’s Renaissance Technologies, Kevin Kotler’s Broadfin Capital and Jacob Gottlieb’s Visium Asset Management.

As aggregate interest increased, key money managers have been driving this bullishness. Citadel Investment Group, managed by Ken Griffin, established the most valuable position in Masimo Corporation (NASDAQ:MASI). Citadel Investment Group had 1.8 million invested in the company at the end of the quarter. James E. Flynn’s Deerfield Management also initiated a $1.4 million position during the quarter. The other funds with new positions in the stock are D. E. Shaw’s D E Shaw, Dmitry Balyasny’s Balyasny Asset Management, and Steven Cohen’s SAC Capital Advisors.

What have insiders been doing with Masimo Corporation (NASDAQ:MASI)?

Insider trading activity, especially when it’s bullish, is most useful when the primary stock in question has seen transactions within the past 180 days. Over the last half-year time period, Masimo Corporation (NASDAQ:MASI) has seen zero unique insiders buying, and 1 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Masimo Corporation (NASDAQ:MASI). These stocks are Wright Medical Group Inc (NASDAQ:WMGI), CONMED Corporation (NASDAQ:CNMD), ArthroCare Corporation (NASDAQ:ARTC), Cyberonics, Inc. (NASDAQ:CYBX), and Volcano Corporation (NASDAQ:VOLC). This group of stocks belong to the medical appliances & equipment industry and their market caps resemble MASI’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!