In the 21st century investor’s toolkit, there are tons of gauges investors can use to track stocks. A pair of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top investment managers can trounce the market by a healthy amount (see just how much).
Equally as useful, positive insider trading sentiment is a second way to look at the financial markets. Just as you’d expect, there are a variety of incentives for a bullish insider to downsize shares of his or her company, but just one, very clear reason why they would behave bullishly. Several academic studies have demonstrated the market-beating potential of this method if you know what to do (learn more here).
What’s more, it’s important to discuss the recent info surrounding Mindray Medical International Ltd (ADR) (NYSE:MR).
Hedge fund activity in Mindray Medical International Ltd (ADR) (NYSE:MR)
Heading into Q3, a total of 11 of the hedge funds we track held long positions in this stock, a change of 0% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their holdings meaningfully.
When using filings from the hedgies we track, Joho Capital, managed by Robert Karr, holds the biggest position in Mindray Medical International Ltd (ADR) (NYSE:MR). Joho Capital has a $84.2 million position in the stock, comprising 7.2% of its 13F portfolio. The second largest stake is held by Platinum Asset Management, managed by Kerr Neilson, which held a $23.3 million position; 0.4% of its 13F portfolio is allocated to the company. Some other hedgies with similar optimism include Jim Simons’s Renaissance Technologies, J. Alan Reid Jr.’s Forward Management and David Blood and Al Gore’s Generation Investment Management.
Because Mindray Medical International Ltd (ADR) (NYSE:MR) has experienced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there is a sect of funds that slashed their positions entirely heading into Q2. It’s worth mentioning that William B. Gray’s Orbis Investment Management said goodbye to the largest investment of all the hedgies we monitor, worth an estimated $86.9 million in stock, and D. E. Shaw of D E Shaw was right behind this move, as the fund sold off about $1.1 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 have insiders been doing with Mindray Medical International Ltd (ADR) (NYSE:MR)?
Legal insider trading, particularly when it’s bullish, is best served when the primary stock in question has seen transactions within the past six months. Over the latest 180-day time frame, Mindray Medical International Ltd (ADR) (NYSE:MR) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to Mindray Medical International Ltd (ADR) (NYSE:MR). These stocks are C.R. Bard, Inc. (NYSE:BCR), CareFusion Corporation (NYSE:CFN), Teleflex Incorporated (NYSE:TFX), DENTSPLY International Inc. (NASDAQ:XRAY), and The Cooper Companies, Inc. (NYSE:COO). All of these stocks are in the medical instruments & supplies industry and their market caps match MR’s market cap.