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Wright Medical Group Inc (NASDAQ:WMGI): Are Hedge Funds Right About This Stock?

Wright Medical Group Inc (NASDAQ:WMGI) was in 15 hedge funds’ portfolio at the end of December. WMGI has experienced a decrease in hedge fund interest of late. There were 17 hedge funds in our database with WMGI holdings at the end of the previous quarter.

In the financial world, there are dozens of indicators market participants can use to analyze publicly traded companies. A pair of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite hedge fund managers can outperform their index-focused peers by a very impressive margin (see just how much).

Wright Medical Group Inc (NASDAQ:WMGI)Equally as beneficial, bullish insider trading sentiment is another way to break down the investments you’re interested in. Obviously, there are a number of motivations for a bullish insider to drop shares of his or her company, but just one, very clear reason why they would initiate a purchase. Many empirical studies have demonstrated the impressive potential of this tactic if shareholders understand where to look (learn more here).

Now, we’re going to take a gander at the key action encompassing Wright Medical Group Inc (NASDAQ:WMGI).

What does the smart money think about Wright Medical Group Inc (NASDAQ:WMGI)?

At year’s end, a total of 15 of the hedge funds we track held long positions in this stock, a change of -12% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their stakes substantially.

Of the funds we track, Healthcor Management LP, managed by Arthur B Cohen and Joseph Healey, holds the most valuable position in Wright Medical Group Inc (NASDAQ:WMGI). Healthcor Management LP has a $56 million position in the stock, comprising 3.1% of its 13F portfolio. Coming in second is Fisher Asset Management, managed by Ken Fisher, which held a $52 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other peers that hold long positions include Roberto Mignone’s Bridger Management, Eliav Assouline and Marc Andersen’s Axial Capital and Michael Price’s MFP Investors.

Judging by the fact that Wright Medical Group Inc (NASDAQ:WMGI) has faced a declination in interest from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of funds that elected to cut their full holdings in Q4. At the top of the heap, Richard Schimel’s Diamondback Capital sold off the biggest position of the “upper crust” of funds we watch, worth close to $11 million in stock., and Chuck Royce of Royce & Associates was right behind this move, as the fund dumped about $5 million worth. These transactions are important to note, as total hedge fund interest dropped by 2 funds in Q4.

How have insiders been trading Wright Medical Group Inc (NASDAQ:WMGI)?

Insider trading activity, especially when it’s bullish, is best served when the primary stock in question has experienced transactions within the past 180 days. Over the latest half-year time period, Wright Medical Group Inc (NASDAQ:WMGI) has experienced zero unique insiders buying, and 5 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Wright Medical Group Inc (NASDAQ:WMGI). These stocks are NuVasive, Inc. (NASDAQ:NUVA), CONMED Corporation (NASDAQ:CNMD), ArthroCare Corporation (NASDAQ:ARTC), Masimo Corporation (NASDAQ:MASI), and Volcano Corporation (NASDAQ:VOLC). This group of stocks belong to the medical appliances & equipment industry and their market caps are similar to WMGI’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
NuVasive, Inc. (NASDAQ:NUVA) 20 0 0
CONMED Corporation (NASDAQ:CNMD) 12 0 10
ArthroCare Corporation (NASDAQ:ARTC) 22 0 1
Masimo Corporation (NASDAQ:MASI) 9 0 1
Volcano Corporation (NASDAQ:VOLC) 13 1 7

With the returns shown by Insider Monkey’s research, everyday investors should always pay attention to hedge fund and insider trading activity, and Wright Medical Group Inc (NASDAQ:WMGI) applies perfectly to this mantra.

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