Hedge Funds Are Crazy About Endo Health Solutions Inc (ENDP)
Is Endo Health Solutions Inc (NASDAQ:ENDP) a buy?
To many of your fellow readers, hedge funds are viewed as delayed, old investment tools of a forgotten age. Although there are In excess of 8,000 hedge funds trading currently, Insider Monkey aim at the aristocrats of this group, about 525 funds. It is assumed that this group oversees most of all hedge funds' total assets, and by tracking their highest quality equity investments, we've found a few investment strategies that have historically beaten the S&P 500. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we've started sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).
Equally as crucial, optimistic insider trading sentiment is another way to analyze the financial markets. As the old adage goes: there are a number of incentives for a bullish insider to get rid of shares of his or her company, but only one, very simple reason why they would initiate a purchase. Many empirical studies have demonstrated the market-beating potential of this tactic if you understand where to look (learn more here).
Thus, let's study the newest info about Endo Health Solutions Inc (NASDAQ:ENDP).
What does the smart money think about Endo Health Solutions Inc (NASDAQ:ENDP)?
At Q2's end, a total of 24 of the hedge funds we track held long positions in this stock, a change of 4% from the previous quarter. With the smart money's sentiment swirling, there exists a few key hedge fund managers who were boosting their stakes considerably.
When using filings from the hedgies we track, Blue Ridge Capital, managed by John Griffin, holds the biggest position in Endo Health Solutions Inc (NASDAQ:ENDP). Blue Ridge Capital has a $250.2 million position in the stock, comprising 3% of its 13F portfolio. The second largest stake is held by Jacob Gottlieb of Visium Asset Management, with a $176.5 million position; 4.1% of its 13F portfolio is allocated to the stock. Remaining hedgies that hold long positions include Peter Adam Hochfelder's Brahman Capital, Sean Cullinan's Point State Capital and Ken Griffin's Citadel Investment Group.
With a general bullishness amongst the titans, certain bigger names were leading the bulls' herd. Blue Ridge Capital, managed by John Griffin, assembled the largest position in Endo Health Solutions Inc (NASDAQ:ENDP). Blue Ridge Capital had 250.2 million invested in the company at the end of the quarter. Jacob Gottlieb's Visium Asset Management also initiated a $176.5 million position during the quarter. The other funds with brand new ENDP positions are Peter Adam Hochfelder's Brahman Capital, Ken Griffin's Citadel Investment Group, and Glenn Russell Dubin's Highbridge Capital Management.
What have insiders been doing with Endo Health Solutions Inc (NASDAQ:ENDP)?
Insider buying is at its handiest when the company in focus has experienced transactions within the past six months. Over the latest six-month time period, Endo Health Solutions Inc (NASDAQ:ENDP) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll also take a look at the relationship between both of these indicators in other stocks similar to Endo Health Solutions Inc (NASDAQ:ENDP). These stocks are Dr. Reddy's Laboratories Limited (ADR) (NYSE:RDY), Taro Pharmaceutical Industries Ltd. (NYSE:TARO), Cubist Pharmaceuticals Inc (NASDAQ:CBST), United Therapeutics Corporation (NASDAQ:UTHR), and Warner Chilcott Plc (NASDAQ:WCRX). This group of stocks are in the drug manufacturers - other industry and their market caps match ENDP's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
Dr. Reddy's Laboratories Limited (ADR) (NYSE:RDY)
Taro Pharmaceutical Industries Ltd. (NYSE:TARO)
Cubist Pharmaceuticals Inc (NASDAQ:CBST)
United Therapeutics Corporation (NASDAQ:UTHR)
Warner Chilcott Plc (NASDAQ:WCRX)
Using the results explained by the previously mentioned studies, average investors must always keep one eye on hedge fund and insider trading sentiment, and Endo Health Solutions Inc (NASDAQ:ENDP) is an important part of this process.