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Tornier N.V. (TRNX): Are Hedge Funds Right About This Stock?

Is Tornier N.V. (NASDAQ:TRNX) a buy right now? The smart money is becoming more confident. The number of bullish hedge fund bets increased by 7 in recent months.

In today’s marketplace, there are dozens of indicators investors can use to track the equity markets. A couple of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top fund managers can outperform their index-focused peers by a very impressive amount (see just how much).

SAC CAPITAL ADVISORSEqually as beneficial, optimistic insider trading sentiment is a second way to break down the financial markets. Obviously, there are lots of stimuli for a bullish insider to downsize shares of his or her company, but only one, very clear reason why they would buy. Various empirical studies have demonstrated the useful potential of this tactic if you know where to look (learn more here).

Now, let’s take a peek at the key action encompassing Tornier N.V. (NASDAQ:TRNX).

Hedge fund activity in Tornier N.V. (NASDAQ:TRNX)

At the end of the first quarter, a total of 14 of the hedge funds we track held long positions in this stock, a change of 100% from the first quarter. With the smart money’s sentiment swirling, there exists a few notable hedge fund managers who were upping their stakes considerably.

Of the funds we track, Steven Cohen’s SAC Capital Advisors had the most valuable position in Tornier N.V. (NASDAQ:TRNX), worth close to $13.2 million, accounting for 0.1% of its total 13F portfolio. On SAC Capital Advisors’s heels is SAC Subsidiary of CR Intrinsic Investors, with a $12.4 million position; 0.4% of its 13F portfolio is allocated to the stock. Other peers with similar optimism include Paul Tudor Jones’s Tudor Investment Corp, Israel Englander’s Millennium Management and SAC Subsidiary’s Sigma Capital Management.

As one would reasonably expect, some big names have jumped into Tornier N.V. (NASDAQ:TRNX) headfirst. Tudor Investment Corp, managed by Paul Tudor Jones, assembled the most valuable position in Tornier N.V. (NASDAQ:TRNX). Tudor Investment Corp had 7.5 million invested in the company at the end of the quarter. SAC Subsidiary’s Sigma Capital Management also initiated a $2.2 million position during the quarter. The following funds were also among the new TRNX investors: Israel Englander’s Catapult Capital Management, Donald Chiboucis’s Columbus Circle Investors, and John Overdeck and David Siegel’s Two Sigma Advisors.

How are insiders trading Tornier N.V. (NASDAQ:TRNX)?

Insider trading activity, especially when it’s bullish, is particularly usable when the company in focus has seen transactions within the past half-year. Over the last six-month time frame, Tornier N.V. (NASDAQ:TRNX) has seen zero unique insiders purchasing, and 5 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Tornier N.V. (NASDAQ:TRNX). These stocks are Endologix, Inc. (NASDAQ:ELGX), Luminex Corporation (NASDAQ:LMNX), ICU Medical, Incorporated (NASDAQ:ICUI), Cantel Medical Corp. (NYSE:CMN), and Conceptus, Inc. (NASDAQ:CPTS). This group of stocks belong to the medical instruments & supplies industry and their market caps resemble TRNX’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Endologix, Inc. (NASDAQ:ELGX) 14 0 5
Luminex Corporation (NASDAQ:LMNX) 8 2 2
ICU Medical, Incorporated (NASDAQ:ICUI) 14 0 2
Cantel Medical Corp. (NYSE:CMN) 9 0 4
Conceptus, Inc. (NASDAQ:CPTS) 13 0 4

With the returns shown by our strategies, retail investors should always monitor hedge fund and insider trading activity, and Tornier N.V. (NASDAQ:TRNX) is an important part of this process.

Click here to learn why you should track hedge funds

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