If you were to ask many of your peers, hedge funds are perceived as delayed, outdated investment vehicles of an era lost to time. Although there are In excess of 8,000 hedge funds in operation in present day, Insider Monkey focuses on the aristocrats of this club, about 525 funds. Analysts calculate that this group has its hands on the lion's share of the hedge fund industry's total assets, and by paying attention to their best investments, we've discovered a few investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points annually 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 outperformed the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).
Just as useful, bullish insider trading activity is another way to analyze the world of equities. There are many motivations for a bullish insider to get rid of shares of his or her company, but only one, very obvious reason why they would behave bullishly. Several empirical studies have demonstrated the useful potential of this method if investors understand what to do (learn more here).
Furthermore, it's important to study the newest info about Air Methods Corp (NASDAQ:AIRM).
At the end of the second quarter, a total of 18 of the hedge funds we track were long in this stock, a change of 20% from one quarter earlier. With hedge funds' positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their stakes significantly.
According to our 13F database, Deerfield Management, managed by James E. Flynn, holds the biggest position in Air Methods Corp (NASDAQ:AIRM). Deerfield Management has a $29.4 million position in the stock, comprising 1.4% of its 13F portfolio. On Deerfield Management's heels is Arthur B Cohen and Joseph Healey of Healthcor Management LP, with a $13.1 million position; 0.8% of its 13F portfolio is allocated to the stock. Some other hedge funds that are bullish include Brian Ashford-Russell and Tim Woolley's Polar Capital, Israel Englander's Millennium Management and Steven Cohen's SAC Capital Advisors.
As aggregate interest spiked, particular hedge funds were breaking ground themselves. Deerfield Management, managed by James E. Flynn, established the most outsized position in Air Methods Corp (NASDAQ:AIRM). Deerfield Management had 29.4 million invested in the company at the end of the quarter. Arthur B Cohen and Joseph Healey's Healthcor Management LP also made a $13.1 million investment in the stock during the quarter. The following funds were also among the new AIRM investors: Brian Ashford-Russell and Tim Woolley's Polar Capital, Israel Englander's Millennium Management, and Steven Cohen's SAC Capital Advisors.
Bullish insider trading is at its handiest when the company we're looking at has seen transactions within the past half-year. Over the latest 180-day time period, Air Methods Corp (NASDAQ:AIRM) has experienced 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 Air Methods Corp (NASDAQ:AIRM). These stocks are Grupo Aeroportuario del Sureste (ADR) (NYSE:ASR), Grupo Aeroportuario del Pacifico (ADR) (NYSE:PAC), Atlas Air Worldwide Holdings, Inc. (NASDAQ:AAWW), Grupo Aeroportuario del Centro Nort(ADR) (NASDAQ:OMAB), and Bristow Group Inc (NYSE:BRS). All of these stocks are in the air services, other industry and their market caps resemble AIRM's market cap.