Do Hedge Funds Love OSI Systems, Inc. (OSIS)?

We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the government. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article we look at what those investors think of OSI Systems, Inc. (NASDAQ:OSIS).

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Is OSI Systems, Inc. (NASDAQ:OSIS) an attractive investment at the moment? Investors who are in the know are in a bearish mood. The number of bullish hedge fund positions stayed the same which is a slightly negative development in our experience.

To the average investor, there are tons of metrics shareholders can use to value stocks. A couple of the most under-the-radar signals are hedge fund and insider trading interest. Experts at Insider Monkey, a website specializing in hedge funds, have shown that, historically, those who follow the best picks of the elite hedge fund managers can trounce their index-focused peers by a healthy margin (see the details here).

Keeping this in mind, we’re going to review the latest action regarding OSI Systems, Inc. (NASDAQ:OSIS).

How are hedge funds trading OSI Systems, Inc. (NASDAQ:OSIS)?

At the end of the third quarter, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, flat over the quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings substantially.

When looking at the hedgies followed by Insider Monkey, Brett Barakett’s Tremblant Capital had the number one position in OSI Systems, Inc. (NASDAQ:OSIS), worth close to $30,4 million, accounting for 2% of its total 13F portfolio. On Tremblant Capital’s heels is Gotham Asset Management, led by Joel Greenblatt, holding a $15,5 million position; the fund has 0,2% of its 13F portfolio invested in the stock. Other hedgies that are bullish encompass Mark Coe’s Coe Capital Management, John Overdeck and David Siegel’s Two Sigma Advisors and Matthew Hulsizer’s PEAK6 Capital Management.

Due to the fact that OSI Systems, Inc. (NASDAQ:OSIS) has experienced a decline in interest from the entirety of the hedge funds we track, logic holds that there were a few money managers that slashed their positions entirely last quarter. Intriguingly, Glenn Russell Dubin’s Highbridge Capital Management dumped the biggest stake of all the hedgies followed by Insider Monkey, valued at an estimated $0,5 million in stock, and Matthew Hulsizer of PEAK6 Capital Management was right behind this move, as the fund dropped about $0,1 million worth. These bearish behaviors are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s also take a look at hedge fund activity in other stocks similar to OSI Systems, Inc. (NASDAQ:OSIS). These stocks are Virtusa Corporation (NASDAQ:VRTU), LTC Properties Inc (NYSE:LTC), Seaspan Corporation (NYSE:SSW), and FBL Financial Group (NYSE:FFG). All of these stocks’ market caps are closest to OSIS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
VRTU 9 24778 0
LTC 8 11909 3
SSW 7 24084 0
FFG 7 11844 -2

As you can see, OSIS is much more popular among the funds we track than all of these stocks. The hedge fund sentiment is not a certain way to assess the profitability of a stock, but their interest definitely suggest that OSIS may be worth your attention.