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Do Hedge Funds and Insiders Love HeartWare International Inc (HTWR)?

Is HeartWare International Inc (NASDAQ:HTWR) going to take off soon? The best stock pickers are becoming more confident. The number of bullish hedge fund bets moved up by 4 lately.

HeartWare International Inc (NASDAQ:HTWR)In the financial world, there are plenty of gauges investors can use to watch their holdings. A pair of the most useful are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top fund managers can outpace their index-focused peers by a very impressive margin (see just how much).

Just as key, optimistic insider trading activity is another way to break down the investments you’re interested in. Obviously, there are a number of incentives for an upper level exec to get rid of shares of his or her company, but only one, very obvious reason why they would buy. Plenty of empirical studies have demonstrated the market-beating potential of this tactic if investors understand where to look (learn more here).

Consequently, we’re going to take a look at the key action surrounding HeartWare International Inc (NASDAQ:HTWR).

How have hedgies been trading HeartWare International Inc (NASDAQ:HTWR)?

At Q1’s end, a total of 19 of the hedge funds we track held long positions in this stock, a change of 27% from the first quarter. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were boosting their holdings considerably.

When looking at the hedgies we track, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the largest position in HeartWare International Inc (NASDAQ:HTWR). Adage Capital Management has a $54.1 million position in the stock, comprising 0.2% of its 13F portfolio. Sitting at the No. 2 spot is Jerome Pfund and Michael Sjostrom of Sectoral Asset Management, with a $52.7 million position; 1.6% of its 13F portfolio is allocated to the company. Some other peers that hold long positions include James E. Flynn’s Deerfield Management, Matthew Halbower’s Pentwater Capital Management and Jeremy Green’s Redmile Group.

As aggregate interest increased, key hedge funds have been driving this bullishness. Deerfield Management, managed by James E. Flynn, assembled the largest position in HeartWare International Inc (NASDAQ:HTWR). Deerfield Management had 36.4 million invested in the company at the end of the quarter. Jacob Gottlieb’s Visium Asset Management also initiated a $13.7 million position during the quarter. The following funds were also among the new HTWR investors: Christopher Medlock James’s Partner Fund Management, Israel Englander’s Millennium Management, and J. Alan Reid, Jr.’s Forward Management.

How have insiders been trading HeartWare International Inc (NASDAQ:HTWR)?

Insider purchases made by high-level executives is particularly usable when the company in question has seen transactions within the past 180 days. Over the last six-month time period, HeartWare International Inc (NASDAQ:HTWR) has seen zero unique insiders purchasing, and 10 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to HeartWare International Inc (NASDAQ:HTWR). These stocks are Hill-Rom Holdings, Inc. (NYSE:HRC), Endologix, Inc. (NASDAQ:ELGX), Integra Lifesciences Holdings Corp (NASDAQ:IART), DexCom, Inc. (NASDAQ:DXCM), and Insulet Corporation (NASDAQ:PODD). This group of stocks are in the medical instruments & supplies industry and their market caps are closest to HTWR’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Hill-Rom Holdings, Inc. (NYSE:HRC) 14 0 4
Endologix, Inc. (NASDAQ:ELGX) 14 0 5
Integra Lifesciences Holdings Corp (NASDAQ:IART) 13 0 1
DexCom, Inc. (NASDAQ:DXCM) 19 1 8
Insulet Corporation (NASDAQ:PODD) 14 0 4

With the returns exhibited by Insider Monkey’s strategies, retail investors should always monitor hedge fund and insider trading activity, and HeartWare International Inc (NASDAQ:HTWR) shareholders fit into this picture quite nicely.

Click here to learn why you should track hedge funds

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