Peregrine Semiconductor Corp (PSMI): Insiders Are Buying, Should You?

Peregrine Semiconductor Corp (NASDAQ:PSMI) was in 4 hedge funds’ portfolio at the end of March. PSMI has experienced a decrease in hedge fund interest lately. There were 6 hedge funds in our database with PSMI positions at the end of the previous quarter.

To most investors, hedge funds are assumed to be worthless, old financial tools of the past. While there are greater than 8000 funds trading today, we at Insider Monkey hone in on the aristocrats of this club, around 450 funds. It is widely believed that this group controls the lion’s share of the hedge fund industry’s total capital, and by tracking their highest performing investments, we have revealed a few investment strategies that have historically outstripped the S&P 500 index. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 23.3 percentage points in 8 months (see the details here).

Equally as key, optimistic insider trading activity is a second way to parse down the investments you’re interested in. Obviously, there are plenty of stimuli for a corporate insider to get rid of shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Many empirical studies have demonstrated the market-beating potential of this strategy if “monkeys” understand what to do (learn more here).

Consequently, we’re going to take a glance at the key action regarding Peregrine Semiconductor Corp (NASDAQ:PSMI).

What does the smart money think about Peregrine Semiconductor Corp (NASDAQ:PSMI)?

At Q1’s end, a total of 4 of the hedge funds we track were long in this stock, a change of -33% from the first quarter.

Due to the fact that Peregrine Semiconductor Corp (NASDAQ:PSMI) has faced falling interest from hedge fund managers, we can see that there were a few money managers who were dropping their positions entirely at the end of the first quarter. Interestingly, Scott Burney’s Bluefin Investment Management said goodbye to the largest investment of the 450+ funds we watch, comprising close to $4.2 million in stock.. Richard Driehaus’s fund, Driehaus Capital, also cut its stock, about $1.2 million worth. These bearish behaviors are important to note, as total hedge fund interest dropped by 2 funds at the end of the first quarter.

How are insiders trading Peregrine Semiconductor Corp (NASDAQ:PSMI)?

Insider buying is at its handiest when the company in focus has experienced transactions within the past half-year. Over the latest half-year time period, Peregrine Semiconductor Corp (NASDAQ:PSMI) has seen 4 unique insiders purchasing, and 2 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Peregrine Semiconductor Corp (NASDAQ:PSMI). These stocks are Volterra Semiconductor Corporation (NASDAQ:VLTR), Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE), Audience Inc (NASDAQ:ADNC), ParkerVision, Inc. (NASDAQ:PRKR), and Oplink Communications, Inc (NASDAQ:OPLK). This group of stocks belong to the semiconductor – integrated circuits industry and their market caps resemble PSMI’s market cap.