SeaChange International (NASDAQ:SEAC) was in 16 hedge funds’ portfolio at the end of the fourth quarter of 2012. SEAC shareholders have witnessed an increase in hedge fund sentiment lately. There were 12 hedge funds in our database with SEAC positions at the end of the previous quarter.
In the 21st century investor’s toolkit, there are a multitude of gauges market participants can use to analyze stocks. Some of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best investment managers can outclass the broader indices by a superb amount (see just how much).
Just as integral, optimistic insider trading activity is a second way to break down the financial markets. Obviously, there are lots of incentives for an upper level exec to downsize shares of his or her company, but only one, very obvious reason why they would buy. Plenty of academic studies have demonstrated the useful potential of this method if shareholders know what to do (learn more here).
Keeping this in mind, we’re going to take a peek at the latest action encompassing SeaChange International (NASDAQ:SEAC).
How are hedge funds trading SeaChange International (NASDAQ:SEAC)?
Heading into 2013, a total of 16 of the hedge funds we track held long positions in this stock, a change of 33% from the third quarter. With hedge funds’ sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their stakes meaningfully.
Of the funds we track, Starboard Value LP, managed by Jeffrey Smith, holds the biggest position in SeaChange International (NASDAQ:SEAC). Starboard Value LP has a $28 million position in the stock, comprising 3.2% of its 13F portfolio. Coming in second is Roumell Asset Management, managed by Jim Roumell, which held a $14 million position; 0% of its 13F portfolio is allocated to the company. Some other hedge funds that are bullish include John Zaro’s Bourgeon Capital, Spencer M. Waxman’s Shannon River Fund Management and Ian P. Murray’s Lanexa Global Management.
Now, specific money managers were leading the bulls’ herd. Millennium Management, managed by Israel Englander, established the most outsized position in SeaChange International (NASDAQ:SEAC). Millennium Management had 3 million invested in the company at the end of the quarter. D. E. Shaw’s D E Shaw also made a $1 million investment in the stock during the quarter. The following funds were also among the new SEAC investors: Ken Griffin’s Citadel Investment Group, Steven Cohen’s SAC Capital Advisors, and Mike Vranos’s Ellington.
Insider trading activity in SeaChange International (NASDAQ:SEAC)
Insider buying is at its handiest when the company we’re looking at has experienced transactions within the past half-year. Over the last 180-day time period, SeaChange International (NASDAQ:SEAC) has seen 1 unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
With the returns shown by the aforementioned time-tested strategies, everyday investors should always keep an eye on hedge fund and insider trading activity, and SeaChange International (NASDAQ:SEAC) is an important part of this process.
Click here to learn more about Insider Monkey’s Hedge Fund Newsletter
Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.
