Here is What Hedge Funds Think About Nippon Telegraph & Telephone Corp (ADR) (NTT)

Is Nippon Telegraph & Telephone Corp (ADR) (NYSE:NTT) a good investment right now? Prominent investors are becoming less hopeful. The number of bullish hedge fund bets dropped by 1 in recent months.

In the financial world, there are many gauges shareholders can use to monitor publicly traded companies. A duo 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 top picks of the top money managers can trounce the market by a significant amount (see just how much).

Equally as integral, positive insider trading activity is a second way to break down the marketplace. As the old adage goes: there are a variety of incentives for a bullish insider to drop shares of his or her company, but just one, very simple reason why they would initiate a purchase. Various academic studies have demonstrated the useful potential of this tactic if shareholders understand where to look (learn more here).

With all of this in mind, let’s take a gander at the key action regarding Nippon Telegraph & Telephone Corp (ADR) (NYSE:NTT).

How have hedgies been trading Nippon Telegraph & Telephone Corp (ADR) (NYSE:NTT)?

Heading into Q2, a total of 10 of the hedge funds we track held long positions in this stock, a change of -9% from the previous quarter. With hedgies’ sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their stakes significantly.

Of the funds we track, Jim Simons’s Renaissance Technologies had the largest position in Nippon Telegraph & Telephone Corp (ADR) (NYSE:NTT), worth close to $52.6 million, comprising 0.1% of its total 13F portfolio. On Renaissance Technologies’s heels is D E Shaw, managed by D. E. Shaw, which held a $17 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other hedge funds that are bullish include Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Jeffrey Vinik’s Vinik Asset Management and David Dreman’s Dreman Value Management.

Because Nippon Telegraph & Telephone Corp (ADR) (NYSE:NTT) has witnessed declining sentiment from the smart money, logic holds that there exists a select few money managers who were dropping their full holdings heading into Q2. Intriguingly, Israel Englander’s Millennium Management said goodbye to the largest stake of the “upper crust” of funds we watch, totaling close to $4.4 million in stock., and John Overdeck and David Siegel of Two Sigma Advisors was right behind this move, as the fund cut about $0.9 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest fell by 1 funds heading into Q2.

What have insiders been doing with Nippon Telegraph & Telephone Corp (ADR) (NYSE:NTT)?

Bullish insider trading is most useful when the primary stock in question has seen transactions within the past six months. Over the last 180-day time period, Nippon Telegraph & Telephone Corp (ADR) (NYSE:NTT) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Nippon Telegraph & Telephone Corp (ADR) (NYSE:NTT). These stocks are France Telecom SA (ADR) (NYSE:FTE), BT Group plc (ADR) (NYSE:BT), China Telecom Corporation Limited (ADR) (NYSE:CHA), NTT Docomo Inc (ADR) (NYSE:DCM), and Telefonica S.A. (ADR) (NYSE:TEF). This group of stocks belong to the telecom services – foreign industry and their market caps resemble NTT’s market cap.

With the results shown by the aforementioned research, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and Nippon Telegraph & Telephone Corp (ADR) (NYSE:NTT) shareholders fit into this picture quite nicely.

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