Hedge Funds Are Dumping Sirius XM Radio Inc (NASDAQ:SIRI)

Sirius XM Radio Inc (NASDAQ:SIRI) was in 36 hedge funds’ portfolio at the end of December. SIRI investors should be aware of a decrease in enthusiasm from smart money of late. There were 46 hedge funds in our database with SIRI holdings at the end of the previous quarter.

To the average investor, there are plenty of methods market participants can use to track their holdings. Two of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top hedge fund managers can outperform the market by a solid margin (see just how much).

Just as integral, bullish insider trading sentiment is a second way to break down the marketplace. Obviously, there are a variety of reasons for an upper level exec to get rid of shares of his or her company, but just one, very obvious reason why they would behave bullishly. Plenty of empirical studies have demonstrated the useful potential of this tactic if you understand what to do (learn more here).

With these “truths” under our belt, let’s take a peek at the recent action surrounding Sirius XM Radio Inc (NASDAQ:SIRI).

What does the smart money think about Sirius XM Radio Inc (NASDAQ:SIRI)?

At the end of the fourth quarter, a total of 36 of the hedge funds we track were bullish in this stock, a change of -22% from the third quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their holdings meaningfully.

When looking at the hedgies we track, Omega Advisors, managed by Leon Cooperman, holds the largest position in Sirius XM Radio Inc (NASDAQ:SIRI). Omega Advisors has a $207 million position in the stock, comprising 3.8% of its 13F portfolio. Coming in second is Steven Cohen of SAC Capital Advisors, with a $202 million position; the fund has 1% of its 13F portfolio invested in the stock. Remaining peers that hold long positions include Philippe Laffont’s Coatue Management, John Griffin’s Blue Ridge Capital and Donald Chiboucis’s Columbus Circle Investors.

Due to the fact that Sirius XM Radio Inc (NASDAQ:SIRI) has experienced declining sentiment from the aggregate hedge fund industry, it’s safe to say that there exists a select few funds that decided to sell off their full holdings in Q4. Interestingly, Dinakar Singh’s TPG-AXON Management LP dumped the largest stake of the “upper crust” of funds we monitor, comprising about $82 million in stock., and Paul Hudson of Glade Brook Capital Partners was right behind this move, as the fund cut about $17 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 10 funds in Q4.

Insider trading activity in Sirius XM Radio Inc (NASDAQ:SIRI)

Insider buying is at its handiest when the company in question has seen transactions within the past half-year. Over the latest 180-day time frame, Sirius XM Radio Inc (NASDAQ:SIRI) has seen 2 unique insiders purchasing, and 8 insider sales (see the details of insider trades here).

With the results exhibited by the aforementioned time-tested strategies, everyday investors must always watch hedge fund and insider trading sentiment, and Sirius XM Radio Inc (NASDAQ:SIRI) shareholders fit into this picture quite nicely.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.