Thoratec Corporation (NASDAQ:THOR) has experienced a decrease in support from the world’s most elite money managers in recent months.
In the eyes of most traders, hedge funds are viewed as unimportant, outdated financial vehicles of the past. While there are more than 8000 funds with their doors open today, we hone in on the moguls of this club, around 450 funds. It is estimated that this group has its hands on the majority of the smart money’s total capital, and by monitoring their best investments, we have unearthed a few investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per year 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 outclassed the S&P 500 index by 25 percentage points in 6.5 month (explore the details and some picks here).
Equally as key, positive insider trading activity is a second way to break down the stock market universe. Just as you’d expect, there are lots of incentives for a corporate insider to drop shares of his or her company, but only one, very simple reason why they would behave bullishly. Plenty of academic studies have demonstrated the useful potential of this strategy if investors know what to do (learn more here).
Now, let’s take a glance at the key action encompassing Thoratec Corporation (NASDAQ:THOR).
What does the smart money think about Thoratec Corporation (NASDAQ:THOR)?
Heading into 2013, a total of 18 of the hedge funds we track held long positions in this stock, a change of -5% from the previous quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their holdings meaningfully.
According to our comprehensive database, Eric Bannasch’s Cadian Capital had the largest position in Thoratec Corporation (NASDAQ:THOR), worth close to $193 million, accounting for 6.3% of its total 13F portfolio. On Cadian Capital’s heels is Jim Simons of Renaissance Technologies, with a $43 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining hedgies with similar optimism include Chuck Royce’s Royce & Associates, Ken Griffin’s Citadel Investment Group and Cliff Asness’s AQR Capital Management.
Since Thoratec Corporation (NASDAQ:THOR) has experienced declining sentiment from hedge fund managers, logic holds that there exists a select few hedge funds that elected to cut their full holdings heading into 2013. It’s worth mentioning that Scott Burney’s Bluefin Investment Management sold off the biggest position of the “upper crust” of funds we monitor, totaling an estimated $10 million in stock., and Jacob Gottlieb of Visium Asset Management was right behind this move, as the fund dropped about $7 million worth. These moves are important to note, as total hedge fund interest dropped by 1 funds heading into 2013.
What do corporate executives and insiders think about Thoratec Corporation (NASDAQ:THOR)?
Insider trading activity, especially when it’s bullish, is best served when the company in focus has seen transactions within the past half-year. Over the last 180-day time frame, Thoratec Corporation (NASDAQ:THOR) has seen zero unique insiders buying, and 5 insider sales (see the details of insider trades here).
With the results demonstrated by Insider Monkey’s time-tested strategies, retail investors should always monitor hedge fund and insider trading sentiment, and Thoratec Corporation (NASDAQ:THOR) shareholders fit into this picture quite nicely.
Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.