This Metric Says You Are Smart to Buy Teleflex Incorporated (NYSE:TFX)

Teleflex Incorporated (NYSE:TFX) was in 16 hedge funds’ portfolio at the end of December. TFX investors should pay attention to an increase in enthusiasm from smart money in recent months. There were 15 hedge funds in our database with TFX positions at the end of the previous quarter.

Teleflex Incorporated (NYSE:TFX)At the moment, there are plenty of gauges investors can use to watch the equity markets. A pair of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best investment managers can beat the market by a healthy amount (see just how much).

Just as beneficial, optimistic insider trading activity is another way to parse down the financial markets. As the old adage goes: there are a variety of reasons for a bullish insider to downsize shares of his or her company, but just one, very obvious reason why they would buy. Many empirical studies have demonstrated the impressive potential of this tactic if investors understand what to do (learn more here).

Consequently, let’s take a gander at the latest action encompassing Teleflex Incorporated (NYSE:TFX).

How are hedge funds trading Teleflex Incorporated (NYSE:TFX)?

At year’s end, a total of 16 of the hedge funds we track were bullish in this stock, a change of 7% from one quarter earlier. With hedge funds’ capital changing hands, there exists a few key hedge fund managers who were upping their holdings considerably.

According to our comprehensive database, Osterweis Capital Management, managed by John Osterweis, holds the most valuable position in Teleflex Incorporated (NYSE:TFX). Osterweis Capital Management has a $80 million position in the stock, comprising 3.5% of its 13F portfolio. The second largest stake is held by Third Avenue Management, managed by Martin Whitman, which held a $58 million position; 0% of its 13F portfolio is allocated to the stock. Other peers that are bullish include David Dreman’s Dreman Value Management, Chuck Royce’s Royce & Associates and Amy Minella’s Cardinal Capital.

As aggregate interest increased, some big names have jumped into Teleflex Incorporated (NYSE:TFX) headfirst. Tudor Investment Corp, managed by Paul Tudor Jones, assembled the biggest position in Teleflex Incorporated (NYSE:TFX). Tudor Investment Corp had 0 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also made a $0 million investment in the stock during the quarter. The only other fund with a brand new TFX position is Mike Vranos’s Ellington.

How are insiders trading Teleflex Incorporated (NYSE:TFX)?

Bullish insider trading is particularly usable when the company in question has seen transactions within the past six months. Over the latest 180-day time period, Teleflex Incorporated (NYSE:TFX) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

With the results demonstrated by our strategies, everyday investors must always watch hedge fund and insider trading sentiment, and Teleflex Incorporated (NYSE:TFX) is an important part of this process.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

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.