Hedge Funds Are Crazy About DexCom, Inc. (DXCM)

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DexCom, Inc. (NASDAQ:DXCM) was in 19 hedge funds’ portfolio at the end of March. DXCM has seen an increase in support from the world’s most elite money managers lately. There were 17 hedge funds in our database with DXCM positions at the end of the previous quarter.

Dexcom (DXCM)At the moment, there are plenty of methods shareholders can use to watch the equity markets. A duo of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best fund managers can trounce the market by a superb margin (see just how much).

Equally as integral, positive insider trading activity is another way to break down the marketplace. Just as you’d expect, there are a variety of incentives for an upper level exec to sell shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the useful potential of this strategy if shareholders know where to look (learn more here).

With all of this in mind, it’s important to take a peek at the latest action surrounding DexCom, Inc. (NASDAQ:DXCM).

What have hedge funds been doing with DexCom, Inc. (NASDAQ:DXCM)?

At Q1’s end, a total of 19 of the hedge funds we track were long in this stock, a change of 12% from the previous quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were upping their stakes significantly.

When looking at the hedgies we track, Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management had the largest position in DexCom, Inc. (NASDAQ:DXCM), worth close to $27.1 million, accounting for 0.8% of its total 13F portfolio. Sitting at the No. 2 spot is Cupps Capital Management, managed by Drew Cupps, which held a $18.2 million position; 1.8% of its 13F portfolio is allocated to the stock. Remaining peers with similar optimism include SAC Subsidiary’s CR Intrinsic Investors, Scott Burney’s Bluefin Investment Management and Brian Ashford-Russell and Tim Woolley’s Polar Capital.

With a general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves. Balyasny Asset Management, managed by Dmitry Balyasny, initiated the most valuable position in DexCom, Inc. (NASDAQ:DXCM). Balyasny Asset Management had 3.4 million invested in the company at the end of the quarter. George Soros’s Soros Fund Management also initiated a $1.7 million position during the quarter. The other funds with new positions in the stock are Donald Chiboucis’s Columbus Circle Investors, John Overdeck and David Siegel’s Two Sigma Advisors, and D. E. Shaw’s D E Shaw.

How are insiders trading DexCom, Inc. (NASDAQ:DXCM)?

Insider purchases made by high-level executives is best served when the company in question has seen transactions within the past 180 days. Over the latest 180-day time frame, DexCom, Inc. (NASDAQ:DXCM) has experienced 1 unique insiders buying, and 8 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to DexCom, Inc. (NASDAQ:DXCM). These stocks are ICU Medical, Incorporated (NASDAQ:ICUI), HeartWare International Inc (NASDAQ:HTWR), Insulet Corporation (NASDAQ:PODD), Endologix, Inc. (NASDAQ:ELGX), and Integra Lifesciences Holdings Corp (NASDAQ:IART). This group of stocks are in the medical instruments & supplies industry and their market caps resemble DXCM’s market cap.

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