Do Hedge Funds and Insiders Love ChipMOS Technologies (Bermuda) Ltd (IMOS)?

ChipMOS Technologies (Bermuda) Ltd (NASDAQ:IMOS) investors should be aware of a decrease in hedge fund sentiment of late.

In the 21st century investor’s toolkit, there are a multitude of gauges market participants can use to monitor publicly traded companies. A couple of the most useful are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite investment managers can outperform the market by a very impressive margin (see just how much).

Equally as key, bullish insider trading sentiment is another way to parse down the world of equities. As the old adage goes: there are many incentives for an executive to downsize shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Various empirical studies have demonstrated the impressive potential of this tactic if shareholders understand where to look (learn more here).

With these “truths” under our belt, let’s take a glance at the latest action regarding ChipMOS Technologies (Bermuda) Ltd (NASDAQ:IMOS).

How are hedge funds trading ChipMOS Technologies (Bermuda) Ltd (NASDAQ:IMOS)?

In preparation for this quarter, a total of 6 of the hedge funds we track were bullish in this stock, a change of 0% from the previous quarter. With the smart money’s sentiment swirling, there exists a few notable hedge fund managers who were increasing their stakes substantially.

According to our comprehensive database, Richard Chilton’s Chilton Investment Company had the biggest position in ChipMOS Technologies (Bermuda) Ltd (NASDAQ:IMOS), worth close to $22 million, comprising 0.6% of its total 13F portfolio. Sitting at the No. 2 spot is Renaissance Technologies, managed by Jim Simons, which held a $4.1 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other hedgies with similar optimism include Israel Englander’s Millennium Management, Matthew Hulsizer’s PEAK6 Capital Management and Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners.

Since ChipMOS Technologies (Bermuda) Ltd (NASDAQ:IMOS) has witnessed a declination in interest from hedge fund managers, we can see that there was a specific group of funds that elected to cut their positions entirely heading into Q2. Intriguingly, Mike Vranos’s Ellington dumped the largest position of the 450+ funds we track, worth an estimated $0.1 million in stock. These bearish behaviors are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

How have insiders been trading ChipMOS Technologies (Bermuda) Ltd (NASDAQ:IMOS)?

Bullish insider trading is particularly usable when the company we’re looking at has seen transactions within the past 180 days. Over the last six-month time period, ChipMOS Technologies (Bermuda) Ltd (NASDAQ:IMOS) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

With the returns shown by Insider Monkey’s research, everyday investors must always pay attention to hedge fund and insider trading activity, and ChipMOS Technologies (Bermuda) Ltd (NASDAQ:IMOS) is an important part of this process.

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