Shanda Games Limited(ADR) (NASDAQ:GAME) investors should pay attention to a decrease in support from the world’s most elite money managers of late.
In the financial world, there are plenty of gauges investors can use to track Mr. Market. A couple of the most useful are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top investment managers can outpace the market by a very impressive amount (see just how much).
Just as beneficial, optimistic insider trading activity is another way to parse down the financial markets. As the old adage goes: there are a number of stimuli for an executive to sell shares of his or her company, but just one, very clear reason why they would initiate a purchase. Various academic studies have demonstrated the valuable potential of this strategy if shareholders understand what to do (learn more here).
With these “truths” under our belt, let’s take a look at the recent action surrounding Shanda Games Limited(ADR) (NASDAQ:GAME).
How have hedgies been trading Shanda Games Limited(ADR) (NASDAQ:GAME)?
In preparation for this quarter, a total of 5 of the hedge funds we track held long positions in this stock, a change of -17% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their stakes meaningfully.
According to our comprehensive database, Zac Hirzel’s Hirzel Capital Management had the most valuable position in Shanda Games Limited(ADR) (NASDAQ:GAME), worth close to $6.8 million, comprising 2.4% of its total 13F portfolio. On Hirzel Capital Management’s heels is Renaissance Technologies, managed by Jim Simons, which held a $4.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedge funds that are bullish include John Overdeck and David Siegel’s Two Sigma Advisors, Israel Englander’s Millennium Management and Ken Griffin’s Citadel Investment Group.
Seeing as Shanda Games Limited(ADR) (NASDAQ:GAME) has faced falling interest from hedge fund managers, it’s safe to say that there exists a select few money managers that elected to cut their entire stakes at the end of the first quarter. At the top of the heap, Jeffrey Altman’s Owl Creek Asset Management said goodbye to the biggest investment of all the hedgies we monitor, worth an estimated $0.4 million in stock. These transactions are interesting, as total hedge fund interest dropped by 1 funds at the end of the first quarter.
How are insiders trading Shanda Games Limited(ADR) (NASDAQ:GAME)?
Bullish insider trading is at its handiest when the company in focus has experienced transactions within the past 180 days. Over the last six-month time frame, Shanda Games Limited(ADR) (NASDAQ:GAME) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Shanda Games Limited(ADR) (NASDAQ:GAME). These stocks are Rosetta Stone Inc (NYSE:RST), Cornerstone OnDemand, Inc. (NASDAQ:CSOD), Changyou.Com Ltd (ADR) (NASDAQ:CYOU), Take-Two Interactive Software, Inc. (NASDAQ:TTWO), and Perfect World Co., Ltd. (ADR) (NASDAQ:PWRD). This group of stocks are the members of the multimedia & graphics software industry and their market caps match GAME’s market cap.
