Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Hedge Funds Have Bought Halcon, ArthroCare, and More

Page 1 of 2

We like to track hedge fund filings because even though hedge fund managers are buying so many stocks that an investor can’t copy them in every case, the views of these investors are still useful in identifying companies or industries for further research. As such, filings can act similarly to a screen. 13D and 13G filings are issued fairly closely to when a fund makes a transaction, and so serve as a fairly up-to-date picture of a specific manager’s view on a specific stock. The downside is that a fund generally must own 5% or more of the outstanding shares in order to be required to file, so it’s rare to see a larger-cap stock in a filing; of course, mid-cap and small-cap stocks are arguably where it’s most useful to have the input of these managers and their investment teams. Here are some stocks that hedge funds have been buying recently:

Steven Cohen

Billionaire Steve Cohen’s SAC Capital Advisors reported ownership of 1.6 million shares of ArthroCare Corporation (NASDAQ:ARTC), a medical device company. SAC’s 13F filing for the third quarter showed the fund owning about 400,000 shares at the end of September (check out Cohen’s latest stock picks). ArthroCare’s business appears to be steady, with an increase in earnings in its most recent quarter primarily due to lower special charges than in the third quarter of 2011, and the stock trades at 22 times forward earnings estimates. When we had looked at the company compared to its peers, we had decided that larger medical device companies like Medtronic, Inc. (NYSE:MDT) and Stryker Corporation (NYSE:SYK) looked like better buys (see our analysis of ArthroCare and its peers).

Citadel Investment Group, managed by billionaire Ken Griffin, had owned almost 9 million shares of Halcon Resources Corp (NYSE:HK) at the end of the third quarter (find Ken Griffin’s favorite stocks) and bought more shares over the next two months, recently owning just over 11 million shares. Halcon is an oil and gas company and has been experiencing dramatic increases in production over the last year, resulting in a large rise in revenue. Operating income is down, at least for now, as the increased production as also resulted in higher costs. We’d note that several insiders bought the stock in November, and studies show that on average insider purchases- particularly when a consensus of insiders buy- are good signs for a stock (read more about studies on insider trading). Still, we’d hesitate to buy Halcon rather than more mature oil and gas companies.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!