Hedge Funds Are Betting On OSI Systems, Inc. (OSIS)

As industrywide interest jumped, some big names were breaking ground themselves. Daruma Asset Management, led by Mariko Gordon, assembled the largest position in OSI Systems, Inc. (NASDAQ:OSIS). Daruma Asset Management had $4 million invested in the company at the end of the quarter. Chuck Royce’s Royce & Associates also made a $3 million investment in the stock during the quarter. The following funds were also among the new OSIS investors: Jeffrey Moskowitz’s Harvey Partners, Jim Simons’ Renaissance Technologies, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Let’s check out hedge fund activity in other stocks similar to OSI Systems, Inc. (NASDAQ:OSIS). These stocks are Smart & Final Stores Inc (NYSE:SFS), Group 1 Automotive, Inc. (NYSE:GPI), Loral Space & Communications Ltd. (NASDAQ:LORL), and Adeptus Health Inc (NYSE:ADPT). This group of stocks’ market valuations match OSIS’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SFS 9 68535 1
GPI 19 283041 -1
LORL 24 682723 1
ADPT 13 183864 -11

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $305 million. That figure was $56 million in OSIS’s case. Loral Space & Communications Ltd. (NASDAQ:LORL) is the most popular stock in this table. On the other hand Smart & Final Stores Inc (NYSE:SFS) is the least popular one with only 9 bullish hedge fund positions. OSI Systems, Inc. (NASDAQ:OSIS) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard LORL might be a better candidate to consider taking a long position in.

Disclosure: None