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Is Cardiovascular Systems Inc (CSII) A Good Stock To Buy?

We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article we look at what those investors think of Cardiovascular Systems Inc (NASDAQ:CSII).

Cardiovascular Systems Inc (NASDAQ:CSII) investors should pay attention to an increase in activity from the world’s largest hedge funds recently. Our calculations also showed that CSII isn’t among the 30 most popular stocks among hedge funds.

In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s flagship best performing hedge funds strategy returned 6.3% year to date (through December 3rd) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 18 percentage points since its inception (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.

RENAISSANCE TECHNOLOGIES

We’re going to take a look at the fresh hedge fund action regarding Cardiovascular Systems Inc (NASDAQ:CSII).

How are hedge funds trading Cardiovascular Systems Inc (NASDAQ:CSII)?

At the end of the third quarter, a total of 22 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 16% from the previous quarter. The graph below displays the number of hedge funds with bullish position in CSII over the last 13 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

CSII_dec2018

The largest stake in Cardiovascular Systems Inc (NASDAQ:CSII) was held by Partner Fund Management, which reported holding $39.8 million worth of stock at the end of September. It was followed by Renaissance Technologies with a $34.7 million position. Other investors bullish on the company included D E Shaw, Bridger Management, and Millennium Management.

Now, some big names were breaking ground themselves. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, initiated the most valuable position in Cardiovascular Systems Inc (NASDAQ:CSII). Arrowstreet Capital had $5.2 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also made a $0.9 million investment in the stock during the quarter. The following funds were also among the new CSII investors: Dmitry Balyasny’s Balyasny Asset Management, David Costen Haley’s HBK Investments, and Brandon Haley’s Holocene Advisors.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Cardiovascular Systems Inc (NASDAQ:CSII) but similarly valued. These stocks are CBIZ, Inc. (NYSE:CBZ), Fitbit Inc (NYSE:FIT), OceanFirst Financial Corp. (NASDAQ:OCFC), and Party City Holdco Inc (NYSE:PRTY). All of these stocks’ market caps are similar to CSII’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CBZ 15 181773 3
FIT 17 85762 -3
OCFC 15 91004 2
PRTY 18 118672 1
Average 16.25 119303 0.75

View table here if you experience formatting issues.

As you can see these stocks had an average of 16.25 hedge funds with bullish positions and the average amount invested in these stocks was $119 million. That figure was $185 million in CSII’s case. Party City Holdco Inc (NYSE:PRTY) is the most popular stock in this table. On the other hand CBIZ, Inc. (NYSE:CBZ) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Cardiovascular Systems Inc (NASDAQ:CSII) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None. This article was originally published at Insider Monkey.

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