Perfect World Co., Ltd. (ADR) (NASDAQ:PWRD) was in 6 hedge funds’ portfolio at the end of December. PWRD investors should pay attention to an increase in enthusiasm from smart money lately. There were 5 hedge funds in our database with PWRD positions at the end of the previous quarter.
To the average investor, there are dozens of gauges shareholders can use to watch the equity markets. Some of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best investment managers can beat the broader indices by a solid amount (see just how much).
Equally as beneficial, bullish insider trading sentiment is a second way to break down the financial markets. There are lots of motivations for a bullish insider to drop shares of his or her company, but just one, very simple reason why they would buy. Several empirical studies have demonstrated the impressive potential of this method if investors understand what to do (learn more here).
Now, it’s important to take a glance at the key action encompassing Perfect World Co., Ltd. (ADR) (NASDAQ:PWRD).
What does the smart money think about Perfect World Co., Ltd. (ADR) (NASDAQ:PWRD)?
At year’s end, a total of 6 of the hedge funds we track were bullish in this stock, a change of 20% from the third quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings considerably.
When looking at the hedgies we track, Renaissance Technologies, managed by Jim Simons, holds the biggest position in Perfect World Co., Ltd. (ADR) (NASDAQ:PWRD). Renaissance Technologies has a $15.6 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On Renaissance Technologies’s heels is Brian Taylor of Pine River Capital Management, with a $3.7 million position; 0.1% of its 13F portfolio is allocated to the company. Remaining peers 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.
As aggregate interest increased, specific money managers were leading the bulls’ herd. Owl Creek Asset Management, managed by Jeffrey Altman, assembled the biggest position in Perfect World Co., Ltd. (ADR) (NASDAQ:PWRD). Owl Creek Asset Management had 0.4 million invested in the company at the end of the quarter.
What do corporate executives and insiders think about Perfect World Co., Ltd. (ADR) (NASDAQ:PWRD)?
Insider purchases made by high-level executives is most useful when the company in question has experienced transactions within the past six months. Over the latest six-month time period, Perfect World Co., Ltd. (ADR) (NASDAQ:PWRD) 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 Perfect World Co., Ltd. (ADR) (NASDAQ:PWRD). These stocks are Glu Mobile Inc. (NASDAQ:GLUU), Avid Technology, Inc. (NASDAQ:AVID), KongZhong Corporation (ADR) (NASDAQ:KONG), Rosetta Stone Inc (NYSE:RST), and Shanda Games Limited(ADR) (NASDAQ:GAME). This group of stocks are in the multimedia & graphics software industry and their market caps match PWRD’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Glu Mobile Inc. (NASDAQ:GLUU) | 7 | 4 | 1 |
| Avid Technology, Inc. (NASDAQ:AVID) | 12 | 1 | 0 |
| KongZhong Corporation (ADR) (NASDAQ:KONG) | 3 | 0 | 0 |
| Rosetta Stone Inc (NYSE:RST) | 5 | 1 | 5 |
| Shanda Games Limited(ADR) (NASDAQ:GAME) | 5 | 0 | 0 |
With the returns demonstrated by Insider Monkey’s studies, everyday investors should always pay attention to hedge fund and insider trading sentiment, and Perfect World Co., Ltd. (ADR) (NASDAQ:PWRD) is no exception.
