SK Telecom Co., Ltd. (ADR) (NYSE:SKM) investors should be aware of an increase in activity from the world’s largest hedge funds recently.
In the financial world, there are many metrics shareholders can use to monitor stocks. A couple of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best fund managers can outperform the market by a superb margin (see just how much).
Just as important, optimistic insider trading sentiment is a second way to parse down the marketplace. There are many reasons for a bullish insider to downsize shares of his or her company, but just one, very obvious reason why they would buy. Various academic studies have demonstrated the valuable potential of this tactic if piggybackers know where to look (learn more here).
With all of this in mind, it’s important to take a peek at the latest action regarding SK Telecom Co., Ltd. (ADR) (NYSE:SKM).
Hedge fund activity in SK Telecom Co., Ltd. (ADR) (NYSE:SKM)
In preparation for this quarter, a total of 15 of the hedge funds we track were long in this stock, a change of 15% from the first quarter. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were upping their holdings substantially.
Of the funds we track, William B. Gray’s Orbis Investment Management had the largest position in SK Telecom Co., Ltd. (ADR) (NYSE:SKM), worth close to $181 million, accounting for 1.5% of its total 13F portfolio. Sitting at the No. 2 spot is Charles de Vaulx of International Value Advisers, with a $45.6 million position; the fund has 1% of its 13F portfolio invested in the stock. Remaining hedgies that hold long positions include Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Cliff Asness’s AQR Capital Management and Kerr Neilson’s Platinum Asset Management.
Now, specific money managers were leading the bulls’ herd. Hudson Bay Capital Management, managed by Sander Gerber, created the most outsized position in SK Telecom Co., Ltd. (ADR) (NYSE:SKM). Hudson Bay Capital Management had 2.7 million invested in the company at the end of the quarter. Daniel S. Och’s OZ Management also made a $2.1 million investment in the stock during the quarter. The following funds were also among the new SKM investors: Robert B. Gillam’s McKinley Capital Management, Bruce Kovner’s Caxton Associates LP, and Steven Cohen’s SAC Capital Advisors.
How are insiders trading SK Telecom Co., Ltd. (ADR) (NYSE:SKM)?
Insider purchases made by high-level executives is best served when the company we’re looking at has experienced transactions within the past six months. Over the latest 180-day time frame, SK Telecom Co., Ltd. (ADR) (NYSE:SKM) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to SK Telecom Co., Ltd. (ADR) (NYSE:SKM). These stocks are Mobile TeleSystems OJSC (ADR) (NYSE:MBT), Sprint Nextel Corporation (NYSE:S), TIM Participacoes SA (ADR) (NYSE:TSU), VimpelCom Ltd (ADR) (NYSE:VIP), and Turkcell Iletisim Hizmetleri A.S. (ADR) (NYSE:TKC). This group of stocks are in the wireless communications industry and their market caps match SKM’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Mobile TeleSystems OJSC (ADR) (NYSE:MBT) | 15 | 0 | 0 |
| Sprint Nextel Corporation (NYSE:S) | 51 | 0 | 3 |
| TIM Participacoes SA (ADR) (NYSE:TSU) | 11 | 0 | 0 |
| VimpelCom Ltd (ADR) (NYSE:VIP) | 9 | 0 | 0 |
| Turkcell Iletisim Hizmetleri A.S. (ADR) (NYSE:TKC) | 7 | 0 | 0 |
With the results exhibited by Insider Monkey’s strategies, everyday investors should always pay attention to hedge fund and insider trading activity, and SK Telecom Co., Ltd. (ADR) (NYSE:SKM) applies perfectly to this mantra.
