Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track more than 700 prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile gigantic failures like hedge funds’ recent losses in Valeant. Let’s take a closer look at what the funds we track think about Advanced Semiconductor Engineering (ADR) (NYSE:ASX) in this article.
Advanced Semiconductor Engineering (ADR) (NYSE:ASX) has experienced an increase in hedge fund sentiment of late. ASX was in 15 hedge funds’ portfolios at the end of the third quarter of 2016. There were 13 hedge funds in our database with ASX positions at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Coty Inc (NYSE:COTY), Arch Capital Group Ltd. (NASDAQ:ACGL), and Newfield Exploration Co. (NYSE:NFX) to gather more data points.
Follow Ase Technology Holding Co. Ltd. (NYSE:ASX)
Follow Ase Technology Holding Co. Ltd. (NYSE:ASX)
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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Keeping this in mind, we’re going to view the key action surrounding Advanced Semiconductor Engineering (ADR) (NYSE:ASX).
How have hedgies been trading Advanced Semiconductor Engineering (ADR) (NYSE:ASX)?
At the end of the third quarter, a total of 15 of the hedge funds tracked by Insider Monkey were long this stock, a change of 15% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards ASX over the last 5 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, Fisher Asset Management, led by Ken Fisher, holds the largest position in Advanced Semiconductor Engineering (ADR) (NYSE:ASX). Fisher Asset Management has a $170.5 million position in the stock, comprising 0.3% of its 13F portfolio. On Fisher Asset Management’s heels is Peter Rathjens, Bruce Clarke and John Campbell of Arrowstreet Capital, with a $13 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other members of the smart money with similar optimism comprise Jim Simons’s Renaissance Technologies, Israel Englander’s Millennium Management and John Overdeck and David Siegel’s Two Sigma Advisors. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
Consequently, key money managers have jumped into Advanced Semiconductor Engineering (ADR) (NYSE:ASX) headfirst. Highbridge Capital Management, led by Glenn Russell Dubin, created the biggest position in Advanced Semiconductor Engineering (ADR) (NYSE:ASX). Highbridge Capital Management had $0.3 million invested in the company at the end of the quarter. Daniel S. Och’s OZ Management also made a $0.2 million investment in the stock during the quarter. The following funds were also among the new ASX investors: Mike Vranos’s Ellington and Louis Navellier’s Navellier & Associates.
Let’s now review hedge fund activity in other stocks similar to Advanced Semiconductor Engineering (ADR) (NYSE:ASX). These stocks are Coty Inc (NYSE:COTY), Arch Capital Group Ltd. (NASDAQ:ACGL), Newfield Exploration Co. (NYSE:NFX), and Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY). This group of stocks’ market values resemble ASX’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| COTY | 46 | 3034196 | 33 |
| ACGL | 18 | 812370 | -6 |
| NFX | 45 | 738096 | 0 |
| RDY | 9 | 421800 | 2 |
As you can see these stocks had an average of 29.5 hedge funds with bullish positions and the average amount invested in these stocks was $1252 million. That figure was $198 million in ASX’s case. Coty Inc (NYSE:COTY) is the most popular stock in this table. On the other hand Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY) is the least popular one with only 9 bullish hedge fund positions. Advanced Semiconductor Engineering (ADR) (NYSE:ASX) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard COTY might be a better candidate to consider taking a long position in.
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