3D Systems Corporation (NYSE:DDD) was in 8 hedge funds’ portfolio at the end of December. DDD shareholders have witnessed an increase in enthusiasm from smart money lately. There were 7 hedge funds in our database with DDD holdings at the end of the previous quarter.
In the 21st century investor’s toolkit, there are tons of methods shareholders can use to monitor publicly traded companies. Two of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best fund managers can outperform the broader indices by a very impressive amount (see just how much).
Equally as important, positive insider trading sentiment is another way to break down the financial markets. There are plenty of reasons for a bullish insider to downsize shares of his or her company, but just one, very obvious reason why they would buy. Various empirical studies have demonstrated the market-beating potential of this method if shareholders know where to look (learn more here).
With these “truths” under our belt, it’s important to take a gander at the latest action surrounding 3D Systems Corporation (NYSE:DDD).
Hedge fund activity in 3D Systems Corporation (NYSE:DDD)
Heading into 2013, a total of 8 of the hedge funds we track were long in this stock, a change of 14% from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were boosting their holdings meaningfully.
According to our comprehensive database, Chase Coleman and Feroz Dewan’s Tiger Global Management LLC had the biggest position in 3D Systems Corporation (NYSE:DDD), worth close to $55.5 million, comprising 1% of its total 13F portfolio. Sitting at the No. 2 spot is Christopher Lord of Criterion Capital, with a $11.4 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Remaining hedgies with similar optimism include Ken Griffin’s Citadel Investment Group, and Daniel S. Och’s OZ Management.
As industrywide interest jumped, key hedge funds were leading the bulls’ herd. Criterion Capital, managed by Christopher Lord, assembled the most outsized position in 3D Systems Corporation (NYSE:DDD). Criterion Capital had 11.4 million invested in the company at the end of the quarter. Daniel S. Och’s OZ Management also initiated a $2 million position during the quarter. The other funds with new positions in the stock are Glenn Russell Dubin’s Highbridge Capital Management, Ryan Frick and Oliver Evans’s Dorsal Capital Management, and Daniel S. Och’s OZ Management.
How are insiders trading 3D Systems Corporation (NYSE:DDD)?
Insider purchases made by high-level executives is best served when the primary stock in question has experienced transactions within the past half-year. Over the latest six-month time period, 3D Systems Corporation (NYSE:DDD) has experienced 1 unique insiders buying, and 3 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to 3D Systems Corporation (NYSE:DDD). These stocks are Babcock & Wilcox Co (NYSE:BWC), Crane Co. (NYSE:CR), Lennox International Inc. (NYSE:LII), Sauer-Danfoss Inc. (NYSE:SHS), and The Middleby Corporation (NASDAQ:MIDD). All of these stocks are in the diversified machinery industry and their market caps are closest to DDD’s market cap.