Hedge Funds Aren’t Crazy About Canadian Solar Inc. (CSIQ) Anymore

Canadian Solar Inc. (NASDAQ:CSIQ) was in 4 hedge funds’ portfolio at the end of March. CSIQ investors should be aware of a decrease in hedge fund interest recently. There were 6 hedge funds in our database with CSIQ positions at the end of the previous quarter.

In the financial world, there are a multitude of methods investors can use to analyze their holdings. A pair of the most under-the-radar are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top hedge fund managers can trounce the broader indices by a healthy amount (see just how much).

Equally as key, bullish insider trading activity is another way to parse down the stock market universe. Obviously, there are lots of stimuli for an executive to cut shares of his or her company, but just one, very simple reason why they would initiate a purchase. Various academic studies have demonstrated the market-beating potential of this strategy if shareholders understand where to look (learn more here).

Consequently, let’s take a look at the key action surrounding Canadian Solar Inc. (NASDAQ:CSIQ).

How have hedgies been trading Canadian Solar Inc. (NASDAQ:CSIQ)?

In preparation for this quarter, a total of 4 of the hedge funds we track were bullish in this stock, a change of -33% from the first quarter. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their holdings significantly.

Of the funds we track, Shah Capital Management, managed by Himanshu H. Shah, holds the largest position in Canadian Solar Inc. (NASDAQ:CSIQ). Shah Capital Management has a $2.4 million position in the stock, comprising 2.7% of its 13F portfolio. Coming in second is Savitr Capital, managed by Andrew R. Midler, which held a $0.7 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Remaining hedge funds that hold long positions include Louis Bacon’s Moore Global Investments, Ken Griffin’s Citadel Investment Group and Ken Griffin’s Citadel Investment Group.

Seeing as Canadian Solar Inc. (NASDAQ:CSIQ) has witnessed bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there exists a select few fund managers that slashed their full holdings at the end of the first quarter. Intriguingly, John Hurley’s Cavalry Asset Management dumped the largest position of the “upper crust” of funds we key on, totaling an estimated $1.2 million in stock., and D. E. Shaw of D E Shaw was right behind this move, as the fund dropped about $0.2 million worth. These transactions are important to note, as aggregate hedge fund interest fell by 2 funds at the end of the first quarter.

How are insiders trading Canadian Solar Inc. (NASDAQ:CSIQ)?

Insider trading activity, especially when it’s bullish, is particularly usable when the company we’re looking at has experienced transactions within the past six months. Over the latest half-year time frame, Canadian Solar Inc. (NASDAQ:CSIQ) 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 Canadian Solar Inc. (NASDAQ:CSIQ). These stocks are MaxLinear, Inc. (NYSE:MXL), Ultra Clean Holdings Inc (NASDAQ:UCTT), Sigma Designs Inc (NASDAQ:SIGM), and Rubicon Technology, Inc. (NASDAQ:RBCN). All of these stocks are in the semiconductor – specialized industry and their market caps are closest to CSIQ’s market cap.

With the returns demonstrated by our time-tested strategies, everyday investors should always monitor hedge fund and insider trading activity, and Canadian Solar Inc. (NASDAQ:CSIQ) shareholders fit into this picture quite nicely.

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