Theragenics Corporation (NYSE:TGX) shareholders have witnessed an increase in hedge fund interest lately.
To most investors, hedge funds are seen as underperforming, old financial vehicles of the past. While there are greater than 8000 funds trading today, we hone in on the aristocrats of this group, close to 450 funds. It is estimated that this group has its hands on the lion’s share of the smart money’s total capital, and by watching their top picks, we have deciphered a few investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy outpaced 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 outpaced the S&P 500 index by 23.3 percentage points in 8 months (see the details here).
Equally as integral, bullish insider trading activity is a second way to parse down the world of equities. Just as you’d expect, there are many reasons for an executive to drop shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the market-beating potential of this strategy if you understand where to look (learn more here).
Consequently, let’s take a glance at the recent action surrounding Theragenics Corporation (NYSE:TGX).
How have hedgies been trading Theragenics Corporation (NYSE:TGX)?
At the end of the first quarter, a total of 6 of the hedge funds we track were long in this stock, a change of 20% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their stakes significantly.
Of the funds we track, Renaissance Technologies, managed by Jim Simons, holds the biggest position in Theragenics Corporation (NYSE:TGX). Renaissance Technologies has a $2.6 million position in the stock, comprising less than 0.1%% of its 13F portfolio. The second largest stake is held by J. Carlo Cannell of Cannell Capital, with a $1.5 million position; 0.9% of its 13F portfolio is allocated to the stock. Some other peers that hold long positions include Chuck Royce’s Royce & Associates, Nathan Fischel’s DAFNA Capital Management and Peter Algert and Kevin Coldiron’s Algert Coldiron Investors.
With a general bullishness amongst the heavyweights, key money managers have been driving this bullishness. Cannell Capital, managed by J. Carlo Cannell, initiated the most outsized position in Theragenics Corporation (NYSE:TGX). Cannell Capital had 1.5 million invested in the company at the end of the quarter.
What have insiders been doing with Theragenics Corporation (NYSE:TGX)?
Bullish insider trading is best served when the primary stock in question has experienced transactions within the past half-year. Over the latest 180-day time period, Theragenics Corporation (NYSE:TGX) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Theragenics Corporation (NYSE:TGX). These stocks are BSD Medical Corporation (NASDAQ:BSDM), EnteroMedics Inc (NASDAQ:ETRM), Digirad Corporation (NASDAQ:DRAD), Uroplasty, Inc. (NASDAQ:UPI), and Vision-Sciences, Inc. (NASDAQ:VSCI). All of these stocks are in the medical appliances & equipment industry and their market caps match TGX’s market cap.