Volcano Corporation (VOLC): Insiders Are Buying, Should You?

Volcano Corporation (NASDAQ:VOLC) was in 13 hedge funds’ portfolio at the end of December. VOLC has seen a decrease in hedge fund interest in recent months. There were 13 hedge funds in our database with VOLC holdings at the end of the previous quarter.

Volcano Corporation (NASDAQ:VOLC)

In today’s marketplace, there are tons of methods investors can use to watch the equity markets. A pair of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best money managers can trounce their index-focused peers by a very impressive amount (see just how much).

Just as key, positive insider trading activity is a second way to break down the investments you’re interested in. As the old adage goes: there are plenty of reasons for an insider to sell shares of his or her company, but just one, very simple reason why they would behave bullishly. Several academic studies have demonstrated the impressive potential of this method if shareholders know what to do (learn more here).

Now, let’s take a glance at the latest action encompassing Volcano Corporation (NASDAQ:VOLC).

How are hedge funds trading Volcano Corporation (NASDAQ:VOLC)?

In preparation for this year, a total of 13 of the hedge funds we track held long positions in this stock, a change of 0% from one quarter earlier. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their holdings considerably.

According to our comprehensive database, Ken Griffin’s Citadel Investment Group had the biggest position in Volcano Corporation (NASDAQ:VOLC), worth close to $31.8 million, accounting for less than 0.1%% of its total 13F portfolio. Coming in second is Israel Englander of Millennium Management, with a $9.7 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Scott Burney’s Bluefin Investment Management, Donald Chiboucis’s Columbus Circle Investors and Glenn Russell Dubin’s Highbridge Capital Management.

Seeing as Volcano Corporation (NASDAQ:VOLC) has experienced falling interest from hedge fund managers, it’s safe to say that there exists a select few money managers that slashed their entire stakes last quarter. It’s worth mentioning that Daniel Arbess’s Xerion dropped the biggest position of the “upper crust” of funds we monitor, comprising about $9.2 million in call options. Samuel Isaly’s fund, OrbiMed Advisors, also dumped its stock, about $5.3 million worth. These moves are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

What do corporate executives and insiders think about Volcano Corporation (NASDAQ:VOLC)?

Insider buying is best served when the primary stock in question has seen transactions within the past six months. Over the last six-month time frame, Volcano Corporation (NASDAQ:VOLC) has experienced 1 unique insiders purchasing, and 7 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Volcano Corporation (NASDAQ:VOLC). These stocks are CONMED Corporation (NASDAQ:CNMD), ArthroCare Corporation (NASDAQ:ARTC), Globus Medical Inc (NYSE:GMED), Cyberonics, Inc. (NASDAQ:CYBX), and Masimo Corporation (NASDAQ:MASI). All of these stocks are in the medical appliances & equipment industry and their market caps match VOLC’s market cap.