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.

Richard Mashaal’s Latest Growth Candidate in Healthcare Is Medigus Ltd. (MDGS)

Page 1 of 2

According to a recent 13G form filed with the Securities and Exchange Commission, Richard Mashaal‘s RIMA Senvest Management has disclosed an investment of about 64.96 million shares in the Israel-based healthcare company Medigus Ltd. (NASDAQ:MDGS). The holding amasses about 19.04% of the company’s outstanding shares and includes 20.63 million ordinary shares that are issuable upon exercise of warrants.



The New York-based fund RIMA Senvest primarily invests in small-cap and mid-cap companies that have strong growth prospects, and often utilizes a contrarian approach while selecting these firms. As we will find out in this article, Medigus Ltd. (NASDAQ:MDGS) neatly fits this growth bill. The healthcare sector represented about 15% of the fund’s public equity portfolio’s market value, according to its latest 13F filing.

Richard Mashaal
Richard Mashaal
Rima Senvest Management

An everyday investor does not have the time or the required skill-set to carry out an in-depth analysis of equities and identify companies with the best future prospects like a fund with the knowledge and resources of Visium can. However, it is also not a good idea to pay the egregiously high fees that investment firms charge for their stock picking expertise. Thus a retail investor is better off to monkey the most popular stock picks among hedge funds by him or herself. But not just any picks mind you. Our research has shown that a portfolio based on hedge funds’ top stock picks (which are invariably comprised entirely of large-cap companies) falls considerably short of a portfolio based on their best small-cap stock picks. The most popular large-cap stocks among hedge funds underperformed the market by an average of seven basis points per month in our back tests whereas the 15 most popular small-cap stock picks among hedge funds outperformed the market by nearly a percentage point per month over the same period between 1999 and 2012. Since officially launching our small-cap strategy in August 2012 it has performed just as predicted, beating the market by over 80 percentage points and returning over 139%, while hedge funds themselves have collectively underperformed the market (read the details here).

Medigus Ltd. (NASDAQ:MDGS) recently completed its public offering in Israel of 70,250 units, for total proceeds of approximately NIS 26.8 million ($7.1 million), according to a Form 6-K filed with the SEC. Each unit comprised of 1,000 ordinary shares and 500 new Series 9 warrants, which trade on the Tel Aviv Stock Exchange (TLV) and are exercisable into one ordinary share at an exercisable price of NIS 0.532 ($0.14) until July 8, 2018.

Medigus Ltd. (NASDAQ:MDGS) is a medical device company engaged in the development of minimally invasive endosurgical tools, and is also a leader in direct visualization technologies. The company’s leading product is a unique proprietary endoscopic device, MUSE system (Medigus Ultrasonic Surgical Endostapler), which is used in the treatment of gastroesophageal reflux disease (GERD), a disease that affects between 10 to 20 million people in the U.S. according to The Society of Thoracic Surgeons.

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!