PSS World Medical, Inc. (NASDAQ:PSSI) investors should be aware of an increase in hedge fund sentiment of late.
To most traders, hedge funds are assumed to be worthless, outdated investment tools of years past. While there are more than 8000 funds trading at present, we choose to focus on the moguls of this group, close to 450 funds. Most estimates calculate that this group has its hands on most of all hedge funds’ total asset base, and by monitoring their best stock picks, we have deciphered a few investment strategies that have historically outperformed the broader indices. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points annually 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 outpaced the S&P 500 index by 25 percentage points in 6.5 month (see the details here).
Just as important, bullish insider trading sentiment is another way to parse down the marketplace. As the old adage goes: there are lots of incentives for an executive to get rid of 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 shareholders know what to do (learn more here).
Keeping this in mind, let’s take a look at the latest action regarding PSS World Medical, Inc. (NASDAQ:PSSI).
How are hedge funds trading PSS World Medical, Inc. (NASDAQ:PSSI)?
Heading into 2013, a total of 20 of the hedge funds we track were long in this stock, a change of 18% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their holdings substantially.
When looking at the hedgies we track, AQR Capital Management, managed by Cliff Asness, holds the biggest position in PSS World Medical, Inc. (NASDAQ:PSSI). AQR Capital Management has a $65 million position in the stock, comprising 0.3% of its 13F portfolio. On AQR Capital Management’s heels is Jonathon Jacobson of Highfields Capital Management, with a $58 million position; 0.6% of its 13F portfolio is allocated to the company. Remaining peers that hold long positions include Robert Emil Zoellner’s Alpine Associates, Matthew Halbower’s Pentwater Capital Management and Thomas Lenox Kempner’s Davidson Kempner.
As aggregate interest increased, key money managers were breaking ground themselves. Highfields Capital Management, managed by Jonathon Jacobson, created the biggest position in PSS World Medical, Inc. (NASDAQ:PSSI). Highfields Capital Management had 58 million invested in the company at the end of the quarter. Robert Emil Zoellner’s Alpine Associates also made a $58 million investment in the stock during the quarter. The following funds were also among the new PSSI investors: Matthew Halbower’s Pentwater Capital Management, Thomas Lenox Kempner’s Davidson Kempner, and Paul Glazer’s Glazer Capital.
How have insiders been trading PSS World Medical, Inc. (NASDAQ:PSSI)?
Insider trading activity, especially when it’s bullish, is best served when the primary stock in question has experienced transactions within the past 180 days. Over the last 180-day time period, PSS World Medical, Inc. (NASDAQ:PSSI) has experienced zero unique insiders buying, and 1 insider sales (see the details of insider trades here).
With the returns demonstrated by Insider Monkey’s time-tested strategies, everyday investors must always keep an eye on hedge fund and insider trading activity, and PSS World Medical, Inc. (NASDAQ:PSSI) is an important part of this process.
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