To the average investor, there are many metrics market participants can use to watch their holdings. Some of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite hedge fund managers can trounce the S&P 500 by a healthy amount (see just how much).
Just as necessary, bullish insider trading sentiment is a second way to look at the financial markets. As the old adage goes: there are a variety of incentives for a corporate insider to sell shares of his or her company, but only one, very clear reason why they would buy. Plenty of empirical studies have demonstrated the market-beating potential of this tactic if “monkeys” understand where to look (learn more here).
Keeping this in mind, we’re going to analyze the latest info for II-VI, Inc. (NASDAQ:IIVI).
How have hedgies been trading II-VI, Inc. (NASDAQ:IIVI)?
In preparation for the third quarter, a total of 5 of the hedge funds we track were long in this stock, a change of -50% from one quarter earlier. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their holdings substantially.
When using filings from the hedgies we track, Citadel Investment Group, managed by Ken Griffin, holds the largest position in II-VI, Inc. (NASDAQ:IIVI). Citadel Investment Group has a $3.7 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Coming in second is Two Sigma Advisors, managed by John Overdeck and David Siegel, which held a $2.5 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other hedgies with similar optimism include Chuck Royce’s Royce & Associates, Joel Greenblatt’s Gotham Asset Management and Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners.
As II-VI, Inc. (NASDAQ:IIVI) has witnessed a fall in interest from the entirety of the hedge funds we track, it’s safe to say that there lies a certain “tier” of money managers who sold off their entire stakes heading into Q2. Intriguingly, Ken Grossman and Glen Schneider’s SG Capital Management dropped the largest stake of all the hedgies we monitor, comprising close to $14.2 million in stock. D. E. Shaw’s fund, D E Shaw, also sold off its stock, about $1.2 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 5 funds heading into Q2.
What have insiders been doing with II-VI, Inc. (NASDAQ:IIVI)?
Insider buying is most useful when the primary stock in question has seen transactions within the past 180 days. Over the last half-year time period, II-VI, Inc. (NASDAQ:IIVI) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to II-VI, Inc. (NASDAQ:IIVI). These stocks are MTS Systems Corporation (NASDAQ:MTSC), Analogic Corporation (NASDAQ:ALOG), Cubic Corporation (NYSE:CUB), ESCO Technologies Inc. (NYSE:ESE), and Ion Geophysical Corp (NYSE:IO). This group of stocks are the members of the scientific & technical instruments industry and their market caps are similar to IIVI’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| MTS Systems Corporation (NASDAQ:MTSC) | 6 | 0 | 0 |
| Analogic Corporation (NASDAQ:ALOG) | 8 | 0 | 0 |
| Cubic Corporation (NYSE:CUB) | 10 | 0 | 0 |
| ESCO Technologies Inc. (NYSE:ESE) | 3 | 0 | 0 |
| Ion Geophysical Corp (NYSE:IO) | 13 | 0 | 0 |
Using the returns demonstrated by our analyses, average investors should always pay attention to hedge fund and insider trading activity, and II-VI, Inc. (NASDAQ:IIVI) is no exception.
