Boston Scientific Corporation (NYSE:BSX) shareholders have witnessed an increase in hedge fund sentiment of late.
According to most investors, hedge funds are viewed as worthless, outdated financial tools of yesteryear. While there are more than 8000 funds in operation at present, we choose to focus on the aristocrats of this group, close to 450 funds. Most estimates calculate that this group controls the majority of the smart money’s total asset base, and by watching their highest performing picks, we have figured out a few investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 25 percentage points in 6.5 month (see all of our picks from August).
Equally as important, positive insider trading activity is a second way to parse down the stock market universe. Just as you’d expect, there are a variety of incentives for an insider to sell shares of his or her company, but only one, very simple reason why they would behave bullishly. Various academic studies have demonstrated the useful potential of this tactic if “monkeys” understand where to look (learn more here).
Consequently, we’re going to take a glance at the recent action encompassing Boston Scientific Corporation (NYSE:BSX).
What does the smart money think about Boston Scientific Corporation (NYSE:BSX)?
In preparation for this year, a total of 40 of the hedge funds we track were bullish in this stock, a change of 8% from one quarter earlier. With hedge funds’ capital changing hands, there exists a few key hedge fund managers who were increasing their stakes considerably.
When looking at the hedgies we track, Diamond Hill Capital, managed by Ric Dillon, holds the biggest position in Boston Scientific Corporation (NYSE:BSX). Diamond Hill Capital has a $101 million billion position in the stock, comprising 1.2% of its 13F portfolio. Sitting at the No. 2 spot is Leon Cooperman of Omega Advisors, with a $83 million position; 2.8% of its 13F portfolio is allocated to the stock. Some other peers with similar optimism include Curtis Macnguyen’s Ivory Capital (Investment Mgmt), Thomas Ellis and Todd Hammer’s North Run Capital and Ron Gutfleish’s Elm Ridge Capital.
Consequently, some big names were breaking ground themselves. Ivory Capital (Investment Mgmt), managed by Curtis Macnguyen, established the most outsized position in Boston Scientific Corporation (NYSE:BSX). Ivory Capital (Investment Mgmt) had 51 million invested in the company at the end of the quarter. Thomas Ellis and Todd Hammer’s North Run Capital also initiated a $43 million position during the quarter. The other funds with new positions in the stock are Jay Venkatesen’s Ayer Capital Management, Glenn Russell Dubin’s Highbridge Capital Management, and Charles Davidson’s Wexford Capital.
What do corporate executives and insiders think about Boston Scientific Corporation (NYSE:BSX)?
Bullish insider trading is best served when the primary stock in question has experienced transactions within the past 180 days. Over the last six-month time frame, Boston Scientific Corporation (NYSE:BSX) has seen 1 unique insiders buying, and zero insider sales (see the details of insider trades here).
With the returns exhibited by our tactics, retail investors should always pay attention to hedge fund and insider trading sentiment, and Boston Scientific Corporation (NYSE:BSX) is an important part of this process.
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