HeartWare International Inc (NASDAQ:HTWR) investors should be aware of an increase in activity from the world’s largest hedge funds lately.
In today’s marketplace, there are a multitude of indicators market participants can use to analyze the equity markets. A pair of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite money managers can outpace the S&P 500 by a very impressive amount (see just how much).
Equally as integral, positive insider trading activity is a second way to break down the world of equities. Obviously, there are lots of incentives for a bullish insider to downsize shares of his or her company, but only one, very simple reason why they would initiate a purchase. Several academic studies have demonstrated the market-beating potential of this tactic if piggybackers know what to do (learn more here).
Now, we’re going to take a glance at the key action regarding HeartWare International Inc (NASDAQ:HTWR).
How are hedge funds trading HeartWare International Inc (NASDAQ:HTWR)?
Heading into 2013, a total of 13 of the hedge funds we track were bullish in this stock, a change of 18% from one quarter earlier. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were upping their holdings substantially.
Of the funds we track, Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management had the most valuable position in HeartWare International Inc (NASDAQ:HTWR), worth close to $50 million, comprising 1.7% of its total 13F portfolio. Sitting at the No. 2 spot is Adage Capital Management, managed by Phill Gross and Robert Atchinson, which held a $30 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other hedge funds with similar optimism include Matthew Halbower’s Pentwater Capital Management, Steven Cohen’s SAC Capital Advisors and SAC Subsidiary’s CR Intrinsic Investors.
Now, key hedge funds have jumped into HeartWare International Inc (NASDAQ:HTWR) headfirst. SAC Capital Advisors, managed by Steven Cohen, initiated the most outsized position in HeartWare International Inc (NASDAQ:HTWR). SAC Capital Advisors had 20 million invested in the company at the end of the quarter. SAC Subsidiary’s CR Intrinsic Investors also initiated a $8 million position during the quarter. The following funds were also among the new HTWR investors: Donald Chiboucis’s Columbus Circle Investors, Daniel Arbess’s Xerion, and SAC Subsidiary’s Sigma Capital Management.
How are insiders trading HeartWare International Inc (NASDAQ:HTWR)?
Insider buying is best served when the company in question has seen transactions within the past 180 days. Over the latest half-year time frame, HeartWare International Inc (NASDAQ:HTWR) has seen zero unique insiders purchasing, and 10 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 HeartWare International Inc (NASDAQ:HTWR). These stocks are Hill-Rom Holdings, Inc. (NYSE:HRC), Endologix, Inc. (NASDAQ:ELGX), Integra Lifesciences Holdings Corp (NASDAQ:IART), DexCom, Inc. (NASDAQ:DXCM), and Insulet Corporation (NASDAQ:PODD). This group of stocks are in the medical instruments & supplies industry and their market caps match HTWR’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Hill-Rom Holdings, Inc. (NYSE:HRC)||17||0||4|
|Endologix, Inc. (NASDAQ:ELGX)||12||0||7|
|Integra Lifesciences Holdings Corp (NASDAQ:IART)||10||0||1|
|DexCom, Inc. (NASDAQ:DXCM)||16||1||7|
|Insulet Corporation (NASDAQ:PODD)||8||0||4|
With the returns demonstrated by our time-tested strategies, everyday investors must always pay attention to hedge fund and insider trading sentiment, and HeartWare International Inc (NASDAQ:HTWR) is no exception.