Do Hedge Funds and Insiders Love Oclaro, Inc. (OCLR)?

Is Oclaro, Inc. (NASDAQ:OCLR) a buy here? The best stock pickers are in a bearish mood. The number of long hedge fund positions were trimmed by 1 lately.

In the financial world, there are dozens of metrics investors can use to track Mr. Market. Some of the best are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best fund managers can outperform the market by a superb amount (see just how much).

Equally as key, optimistic insider trading activity is another way to break down the world of equities. Obviously, there are many reasons for an upper level exec to sell shares of his or her company, but just one, very obvious reason why they would behave bullishly. Various academic studies have demonstrated the impressive potential of this tactic if investors understand what to do (learn more here).

Keeping this in mind, we’re going to take a gander at the key action encompassing Oclaro, Inc. (NASDAQ:OCLR).

How have hedgies been trading Oclaro, Inc. (NASDAQ:OCLR)?

At Q1’s end, a total of 6 of the hedge funds we track were bullish in this stock, a change of -14% from the first quarter. With hedgies’ capital changing hands, there exists a few key hedge fund managers who were boosting their stakes significantly.

When looking at the hedgies we track, Chuck Royce’s Royce & Associates had the biggest position in Oclaro, Inc. (NASDAQ:OCLR), worth close to $2.7 million, comprising less than 0.1%% of its total 13F portfolio. On Royce & Associates’s heels is Cliff Asness of AQR Capital Management, with a $0.5 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other peers that are bullish include Jim Simons’s Renaissance Technologies, Thomas E. Claugus’s GMT Capital and D. E. Shaw’s D E Shaw.

Due to the fact that Oclaro, Inc. (NASDAQ:OCLR) has experienced a declination in interest from the entirety of the hedge funds we track, it’s safe to say that there is a sect of hedgies who were dropping their positions entirely in Q1. At the top of the heap, Mark Broach’s Manatuck Hill Partners cut the largest stake of the 450+ funds we watch, valued at close to $1.6 million in stock.. Israel Englander’s fund, Millennium Management, also said goodbye to its stock, about $0.8 million worth. These transactions are interesting, as total hedge fund interest fell by 1 funds in Q1.

How have insiders been trading Oclaro, Inc. (NASDAQ:OCLR)?

Insider buying is best served when the company in question has experienced transactions within the past six months. Over the last half-year time frame, Oclaro, Inc. (NASDAQ:OCLR) has experienced zero unique insiders buying, and 2 insider sales (see the details of insider trades here).

With the returns demonstrated by Insider Monkey’s tactics, everyday investors must always keep an eye on hedge fund and insider trading activity, and Oclaro, Inc. (NASDAQ:OCLR) shareholders fit into this picture quite nicely.

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