Mitcham Industries, Inc. (NASDAQ:MIND) was in 9 hedge funds’ portfolio at the end of the fourth quarter of 2012. MIND shareholders have witnessed an increase in support from the world’s most elite money managers recently. There were 7 hedge funds in our database with MIND positions at the end of the previous quarter.
In the financial world, there are a multitude of indicators investors can use to watch Mr. Market. A duo of the most underrated 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 elite investment managers can beat the broader indices by a very impressive amount (see just how much).
Equally as beneficial, bullish insider trading sentiment is another way to parse down the world of equities. As the old adage goes: there are lots of reasons for an insider to get rid of shares of his or her company, but just one, very simple reason why they would behave bullishly. Various academic studies have demonstrated the impressive potential of this tactic if shareholders understand where to look (learn more here).
Consequently, it’s important to take a glance at the latest action surrounding Mitcham Industries, Inc. (NASDAQ:MIND).
How have hedgies been trading Mitcham Industries, Inc. (NASDAQ:MIND)?
At the end of the fourth quarter, a total of 9 of the hedge funds we track held long positions in this stock, a change of 29% from one quarter earlier. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were increasing their holdings considerably.
When looking at the hedgies we track, Ariel Investments, managed by John W. Rogers, holds the biggest position in Mitcham Industries, Inc. (NASDAQ:MIND). Ariel Investments has a $28 million position in the stock, comprising 0.6% of its 13F portfolio. Sitting at the No. 2 spot is Cliff Asness of AQR Capital Management, with a $2 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedgies that hold long positions include Whitney Tilson’s T2 Partners, Zeke Ashton’s Centaur Capital Partners and Jim Simons’s Renaissance Technologies.
Consequently, key money managers have been driving this bullishness. T2 Partners, managed by Whitney Tilson, initiated the most outsized position in Mitcham Industries, Inc. (NASDAQ:MIND). T2 Partners had 1.4 million invested in the company at the end of the quarter. Zeke Ashton’s Centaur Capital Partners also made a $1 million investment in the stock during the quarter. The other funds with new positions in the stock are Chuck Royce’s Royce & Associates and Paul Tudor Jones’s Tudor Investment Corp.
Insider trading activity in Mitcham Industries, Inc. (NASDAQ:MIND)
Insider buying is at its handiest when the company in question has experienced transactions within the past six months. Over the last six-month time period, Mitcham Industries, Inc. (NASDAQ:MIND) has seen 1 unique insiders buying, and 1 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Mitcham Industries, Inc. (NASDAQ:MIND). These stocks are GSI Group Inc. (USA) (NASDAQ:GSIG), Zygo Corporation (NASDAQ:ZIGO), Hurco Companies, Inc. (NASDAQ:HURC), Telenav Inc (NASDAQ:TNAV), and Vishay Precision Group Inc (NYSE:VPG). This group of stocks are the members of the scientific & technical instruments industry and their market caps are closest to MIND’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| GSI Group Inc. (USA) (NASDAQ:GSIG) | 8 | 0 | 0 |
| Zygo Corporation (NASDAQ:ZIGO) | 8 | 2 | 1 |
| Hurco Companies, Inc. (NASDAQ:HURC) | 4 | 0 | 0 |
| Telenav Inc (NASDAQ:TNAV) | 12 | 0 | 6 |
| Vishay Precision Group Inc (NYSE:VPG) | 10 | 0 | 0 |
With the returns demonstrated by Insider Monkey’s strategies, retail investors should always monitor hedge fund and insider trading activity, and Mitcham Industries, Inc. (NASDAQ:MIND) shareholders fit into this picture quite nicely.
