Why You Should Hold Your Bets On the St. Jude Medical, Inc. (STJ) and Thoratec Corporation (THOR) Merger

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How have hedgies been trading St. Jude Medical, Inc. (NYSE:STJ)?

Heading into the second trimester, a total of 37 of the hedge funds tracked by Insider Monkey were long in this stock, an increase of 12% from the fourth quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their stakes significantly.

According to hedge fund intelligence website Insider Monkey, Curtis Macnguyen‘s Ivory Capital Investment Mgmt., holds the number one position in St. Jude Medical, Inc. (NYSE:STJ). Ivory Capital has a $113.3 million position in the stock, comprising 2.7% of its 13F portfolio. Coming in second is Conatus Capital Management, led by David Stemerman, holding an $86.1 million position; 5.4% of its 13F portfolio is allocated to the stock. Other members of the smart money that are bullish encompass Joel Greenblatt‘s Gotham Asset Management, John Overdeck and David Siegel’s Two Sigma Advisors, and Dmitry Balyasny’s Balyasny Asset Management.

As industrywide interest jumped, some big names have jumped into St. Jude Medical, Inc. (NYSE:STJ) headfirst. The list includes the aforementioned Ivory Capital and Conatus Capital Management, which initiated their positions during the March quarter. Other funds with brand new St. Jude positions were Louis Bacon’s Moore Global Investments, Glenn Russell Dubin’s Highbridge Capital Management, and Neil Chriss’ Hutchin Hill Capital.

From a risk arbitrage point of view, the investment in St. Jude Medical, Inc. (NYSE:STJ) at the current level might seem attractive, but if an investor wants to hold the stock for the long term, we would suggest holding onto the horses until Weiss Law’s investigation has ended.

Disclosure: None

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