Hedge Funds Are Selling Cantel Medical Corp. (CMN)
Should Cantel Medical Corp. (NYSE:CMN) investors track the following data?
In the eyes of many investors, hedge funds are perceived as delayed, outdated financial vehicles of an era lost to time. Although there are more than 8,000 hedge funds trading in present day, this site looks at the aristocrats of this group, close to 525 funds. It is widely held that this group oversees the lion's share of the smart money's total capital, and by watching their highest quality investments, we've deciphered a few investment strategies that have historically beaten Mr. Market. 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 began to 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).
Just as necessary, optimistic insider trading activity is another way to analyze the marketplace. There are lots of stimuli for a corporate insider to sell shares of his or her company, but only one, very obvious reason why they would buy. Various academic studies have demonstrated the useful potential of this tactic if piggybackers know where to look (learn more here).
Now that that's out of the way, let's study the newest info for Cantel Medical Corp. (NYSE:CMN).
How have hedgies been trading Cantel Medical Corp. (NYSE:CMN)?
Heading into Q3, a total of 8 of the hedge funds we track were bullish in this stock, a change of -11% from the previous quarter. With hedgies' positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their holdings considerably.
When using filings from the hedgies we track, Mark N. Diker's Diker Management had the biggest position in Cantel Medical Corp. (NYSE:CMN), worth close to $61.1 million, accounting for 18.9% of its total 13F portfolio. On Diker Management's heels is Mario Gabelli of GAMCO Investors, with a $9.5 million position; 0.1% of its 13F portfolio is allocated to the company. Remaining peers that hold long positions include Chuck Royce's Royce & Associates, Cliff Asness's AQR Capital Management and Jim Simons's Renaissance Technologies.
Because Cantel Medical Corp. (NYSE:CMN) has witnessed dropping sentiment from the entirety of the hedge funds we track, it's easy to see that there exists a select few hedge funds who sold off their entire stakes last quarter. At the top of the heap, Joel Greenblatt's Gotham Asset Management said goodbye to the biggest position of the "upper crust" of funds we watch, comprising about $0.4 million in stock. Ken Griffin's fund, Citadel Investment Group, also dumped its stock, about $0.2 million worth. These transactions are important to note, as total hedge fund interest was cut by 1 funds last quarter.
What have insiders been doing with Cantel Medical Corp. (NYSE:CMN)?
Insider buying is at its handiest when the company in question has seen transactions within the past six months. Over the latest half-year time period, Cantel Medical Corp. (NYSE:CMN) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll also review the relationship between both of these indicators in other stocks similar to Cantel Medical Corp. (NYSE:CMN). These stocks are Endologix, Inc. (NASDAQ:ELGX), Luminex Corporation (NASDAQ:LMNX), Conceptus, Inc. (NASDAQ:CPTS), Tornier N.V. (NASDAQ:TRNX), and ICU Medical, Incorporated (NASDAQ:ICUI). This group of stocks belong to the medical instruments & supplies industry and their market caps match CMN's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
Endologix, Inc. (NASDAQ:ELGX)
Luminex Corporation (NASDAQ:LMNX)
Conceptus, Inc. (NASDAQ:CPTS)
Tornier N.V. (NASDAQ:TRNX)
ICU Medical, Incorporated (NASDAQ:ICUI)
Using the results demonstrated by Insider Monkey's studies, regular investors must always track hedge fund and insider trading sentiment, and Cantel Medical Corp. (NYSE:CMN) applies perfectly to this mantra.