Do Hedge Funds and Insiders Love Luminex Corporation (LMNX)?
What's a smart Luminex Corporation (NASDAQ:LMNX) investor to do?
To many of your fellow readers, hedge funds are assumed to be useless, outdated financial vehicles of a forgotten age. Although there are more than 8,000 hedge funds in operation in present day, Insider Monkey aim at the upper echelon of this group, around 525 funds. It is widely held that this group has its hands on most of the smart money's total capital, and by watching their best investments, we've spotted a number of investment strategies that have historically outperformed the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a 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 topped the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).
Equally as crucial, bullish insider trading sentiment is a second way to analyze the financial markets. Obviously, there are many stimuli for an upper level exec to downsize shares of his or her company, but only one, very clear reason why they would initiate a purchase. Several academic studies have demonstrated the useful potential of this method if "monkeys" know what to do (learn more here).
Keeping this in mind, let's examine the latest info surrounding Luminex Corporation (NASDAQ:LMNX).
What does the smart money think about Luminex Corporation (NASDAQ:LMNX)?
At Q2's end, a total of 8 of the hedge funds we track held long positions in this stock, a change of 0% from the first quarter. With hedgies' positions undergoing their usual ebb and flow, there exists an "upper tier" of noteworthy hedge fund managers who were boosting their stakes considerably.
According to our 13F database, Citadel Investment Group, managed by Ken Griffin, holds the most valuable position in Luminex Corporation (NASDAQ:LMNX). Citadel Investment Group has a $6.4 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Coming in second is D. E. Shaw of D E Shaw, with a $2.7 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other hedgies that are bullish include Jim Simons's Renaissance Technologies, John Overdeck and David Siegel's Two Sigma Advisors and Joel Greenblatt's Gotham Asset Management.
Since Luminex Corporation (NASDAQ:LMNX) has experienced dropping sentiment from the entirety of the hedge funds we track, it's safe to say that there exists a select few money managers who sold off their positions entirely at the end of the second quarter. Intriguingly, Matthew Tewksbury's Stevens Capital Management sold off the largest position of the 450+ funds we key on, totaling about $0.6 million in stock, and Ken Gray and Steve Walsh of Bryn Mawr Capital was right behind this move, as the fund sold off about $0.4 million worth. These bearish behaviors are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What have insiders been doing with Luminex Corporation (NASDAQ:LMNX)?
Insider buying is at its handiest when the primary stock in question has seen transactions within the past half-year. Over the last 180-day time frame, Luminex Corporation (NASDAQ:LMNX) has experienced zero unique insiders purchasing, 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 Luminex Corporation (NASDAQ:LMNX). These stocks are Merit Medical Systems, Inc. (NASDAQ:MMSI), ICU Medical, Incorporated (NASDAQ:ICUI), Cantel Medical Corp. (NYSE:CMN), Tornier N.V. (NASDAQ:TRNX), and Conceptus, Inc. (NASDAQ:CPTS). This group of stocks belong to the medical instruments & supplies industry and their market caps are similar to LMNX's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
Merit Medical Systems, Inc. (NASDAQ:MMSI)
ICU Medical, Incorporated (NASDAQ:ICUI)
Cantel Medical Corp. (NYSE:CMN)
Tornier N.V. (NASDAQ:TRNX)
Conceptus, Inc. (NASDAQ:CPTS)
Using the returns demonstrated by our research, regular investors should always track hedge fund and insider trading sentiment, and Luminex Corporation (NASDAQ:LMNX) is no exception.