Should You Buy Globus Medical Inc (GMED)?

As one would reasonably expect, specific money managers were leading the bulls’ herd. Renaissance Technologies, managed by Jim Simons, initiated the most outsized position in Globus Medical Inc (NYSE:GMED). Renaissance Technologies had $3 million invested in the company at the end of the quarter. Justin John Ferayorni’s Tamarack Capital Management also initiated a $0.9 million position during the quarter. The other funds with new positions in the stock are Chao Ku’s Nine Chapters Capital Management, Hal Mintz’s Sabby Capital, and Benjamin A. Smith’s Laurion Capital Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Globus Medical Inc (NYSE:GMED) but similarly valued. We will take a look at Terex Corporation (NYSE:TEX), Knight Transportation (NYSE:KNX), The New York Times Company (NYSE:NYT), and Xenia Hotels & Resorts Inc (NYSE:XHR). This group of stocks’ market valuations match GMED’s market valuation.

As you can see these stocks had an average of 18.25 hedge funds with bullish positions and the average amount invested in these stocks was $160 million. That figure was $85 million in GMED’s case. Terex Corporation (NYSE:TEX) is the most popular stock in this table. On the other hand Xenia Hotels & Resorts Inc (NYSE:XHR) is the least popular one with only 13 bullish hedge fund positions. Globus Medical Inc (NYSE:GMED) is among the most popular stocks in this group and that makes the stock worth a closer look.