What's a smart Invacare Corporation (NYSE:IVC) investor to do?
To many of your peers, hedge funds are perceived as useless, outdated investment vehicles of an era lost to time. Although there are over 8,000 hedge funds with their doors open today, Insider Monkey focuses on the bigwigs of this club, close to 525 funds. Analysts calculate that this group controls most of all hedge funds' total assets, and by paying attention to their highest quality picks, we've identified a number of investment strategies that have historically outpaced Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we've started sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).
Equally as necessary, positive insider trading sentiment is a second way to analyze the financial markets. There are a number of stimuli for a bullish insider to drop shares of his or her company, but only one, very clear reason why they would buy. Plenty of academic studies have demonstrated the useful potential of this strategy if "monkeys" understand what to do (learn more here).
What's more, let's discuss the recent info about Invacare Corporation (NYSE:IVC).
Heading into Q3, a total of 12 of the hedge funds we track were long in this stock, a change of -25% from the previous quarter. With hedgies' capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their stakes substantially.
When using filings from the hedgies we track, Chuck Royce's Royce & Associates had the largest position in Invacare Corporation (NYSE:IVC), worth close to $18.5 million, comprising 0.1% of its total 13F portfolio. Coming in second is Jim Simons of Renaissance Technologies, with a $6.9 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other hedgies that are bullish include Ryan Schaper's Point Lobos Capital, Cliff Asness's AQR Capital Management and D. E. Shaw's D E Shaw.
As Invacare Corporation (NYSE:IVC) has experienced a fall in interest from the entirety of the hedge funds we track, it's easy to see that there was a specific group of money managers that slashed their positions entirely in Q1. It's worth mentioning that Joel Greenblatt's Gotham Asset Management cut the biggest position of the 450+ funds we key on, worth close to $0.9 million in stock, and Neil Chriss of Hutchin Hill Capital was right behind this move, as the fund dropped about $0.6 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 4 funds in Q1.
Insider buying made by high-level executives is at its handiest when the company in focus has seen transactions within the past 180 days. Over the latest half-year time frame, Invacare Corporation (NYSE:IVC) has seen zero unique insiders purchasing, 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 Invacare Corporation (NYSE:IVC). These stocks are Cardiovascular Systems Inc (NASDAQ:CSII), Natus Medical Inc (NASDAQ:BABY), GenMark Diagnostics, Inc (NASDAQ:GNMK), Cynosure, Inc. (NASDAQ:CYNO), and Symmetry Medical Inc. (NYSE:SMA). This group of stocks are in the medical appliances & equipment industry and their market caps are similar to IVC's market cap.