It was a rough third quarter for many hedge funds, which were naturally unable to overcome the big dip in the broad market, as the S&P 500 fell by about 7% during the quarter. The Russell 2000, composed of smaller companies, performed even worse, trailing the S&P by about 14 percentage points between June 25 and October 30, as investors fled less-known quantities for safe havens. This was the case with hedge funds, who we heard were pulling money from the market amid the volatility, which included money from small-cap stocks, which they invest in at a higher rate than other investors. This action contributed to the greater decline in these stocks during the tumultuous period. We will study how this market volatility affected their sentiment towards HeartWare International Inc (NASDAQ:HTWR) during the quarter below.
HeartWare International Inc (NASDAQ:HTWR) has seen an increase in activity from the world’s largest hedge funds lately. HTWR was in 21 hedge funds’ portfolios at the end of the third quarter of 2015. There were 15 hedge funds in our database with HTWR holdings at the end of the previous quarter. At the end of this article we will also compare HTWR to other stocks, including Golar LNG Partners LP (NASDAQ:GMLP), Rouse Properties Inc (NYSE:RSE), and Babcock & Wilcox Enterprises Inc (NYSE:BW) to get a better sense of its popularity.
To the average investor there are a multitude of indicators investors can use to appraise stocks. A pair of the less known indicators are hedge fund and insider trading moves. Our researchers have shown that, historically, those who follow the best picks of the best hedge fund managers can outperform the S&P 500 by a healthy margin (see the details here).
Now, we’re going to take a look at the key action encompassing HeartWare International Inc (NASDAQ:HTWR).
How have hedgies been trading HeartWare International Inc (NASDAQ:HTWR)?
At the Q3’s end, a total of 21 of the hedge funds tracked by Insider Monkey were long this stock, a change of 40% from one quarter earlier. With hedgies’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their holdings substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Phill Gross and Robert Atchinson’s Adage Capital Management has the number one position in HeartWare International Inc (NASDAQ:HTWR), worth close to $90.1 million, comprising 0.3% of its total 13F portfolio. The second most bullish fund manager is Point72 Asset Management, led by Steve Cohen, holding a $17.5 million position; 0.1% of its 13F portfolio is allocated to the company. Other hedge funds and institutional investors that are bullish contain Kris Jenner, Gordon Bussard, Graham McPhail’s Rock Springs Capital Management, William Leland Edwards’ Palo Alto Investors and Kevin Kotler’s Broadfin Capital.