Wright Medical Group Inc (NASDAQ:WMGI) was in 26 hedge funds’ portfolio at the end of the first quarter of 2013. WMGI investors should pay attention to an increase in hedge fund sentiment lately. There were 17 hedge funds in our database with WMGI positions at the end of the previous quarter.
According to most investors, hedge funds are perceived as slow, old investment vehicles of years past. While there are greater than 8000 funds with their doors open at the moment, we choose to focus on the crème de la crème of this club, about 450 funds. Most estimates calculate that this group oversees the majority of the hedge fund industry’s total asset base, and by tracking their highest performing picks, we have formulated a few investment strategies that have historically outperformed the S&P 500 index. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per 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 trumped the S&P 500 index by 23.3 percentage points in 8 months (see all of our picks from August).
Just as integral, positive insider trading sentiment is another way to parse down the stock market universe. As the old adage goes: there are a number of motivations for an executive to sell shares of his or her company, but only one, very simple reason why they would initiate a purchase. Many academic studies have demonstrated the useful potential of this strategy if you know what to do (learn more here).
Now, we’re going to take a glance at the recent action regarding Wright Medical Group Inc (NASDAQ:WMGI).
What does the smart money think about Wright Medical Group Inc (NASDAQ:WMGI)?
In preparation for this quarter, a total of 26 of the hedge funds we track were bullish in this stock, a change of 53% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were boosting their stakes considerably.
When looking at the hedgies we track, Healthcor Management LP, managed by Arthur B Cohen and Joseph Healey, holds the largest position in Wright Medical Group Inc (NASDAQ:WMGI). Healthcor Management LP has a $66.1 million position in the stock, comprising 2.9% of its 13F portfolio. Sitting at the No. 2 spot is Ken Fisher of Fisher Asset Management, with a $58.7 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Remaining hedgies that are bullish include Roberto Mignone’s Bridger Management, Stephen DuBois’s Camber Capital Management and Eliav Assouline and Marc Andersen’s Axial Capital.
As aggregate interest increased, some big names have been driving this bullishness. CR Intrinsic Investors, managed by SAC Subsidiary, established the most outsized position in Wright Medical Group Inc (NASDAQ:WMGI). CR Intrinsic Investors had 10.7 million invested in the company at the end of the quarter. Jacob Gottlieb’s Visium Asset Management also initiated a $4.3 million position during the quarter. The other funds with new positions in the stock are Peter Rathjens Bruce Clarke and John Campbell’s Arrowstreet Capital, D. E. Shaw’s D E Shaw, and Andy Redleaf’s Whitebox Advisors.
What have insiders been doing with Wright Medical Group Inc (NASDAQ:WMGI)?
Insider purchases made by high-level executives is particularly usable when the company we’re looking at has seen transactions within the past half-year. Over the last 180-day time frame, Wright Medical Group Inc (NASDAQ:WMGI) has experienced zero unique insiders buying, and 6 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Wright Medical Group Inc (NASDAQ:WMGI). These stocks are Volcano Corporation (NASDAQ:VOLC), Masimo Corporation (NASDAQ:MASI), ArthroCare Corporation (NASDAQ:ARTC), CONMED Corporation (NASDAQ:CNMD), and NuVasive, Inc. (NASDAQ:NUVA). This group of stocks belong to the medical appliances & equipment industry and their market caps match WMGI’s market cap.