Phoenix New Media Ltd ADR (FENG): Hedge Funds Are Bullish and Insiders Are Bearish, What Should You Do?

Is Phoenix New Media Ltd ADR (NYSE:FENG) going to take off soon? Investors who are in the know are taking an optimistic view. The number of bullish hedge fund positions advanced by 1 recently.

To the average investor, there are tons of metrics investors can use to track Mr. Market. A couple of the best are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite money managers can outclass the S&P 500 by a superb margin (see just how much).

Equally as important, optimistic insider trading sentiment is another way to break down the stock market universe. There are a variety of reasons for an executive to drop shares of his or her company, but just one, very obvious reason why they would behave bullishly. Various academic studies have demonstrated the impressive potential of this strategy if piggybackers know where to look (learn more here).

Keeping this in mind, we’re going to take a look at the key action surrounding Phoenix New Media Ltd ADR (NYSE:FENG).

How are hedge funds trading Phoenix New Media Ltd ADR (NYSE:FENG)?

Heading into Q2, a total of 6 of the hedge funds we track were long in this stock, a change of 20% from the first quarter. With hedgies’ sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their holdings meaningfully.

When looking at the hedgies we track, D E Shaw, managed by D. E. Shaw, holds the largest position in Phoenix New Media Ltd ADR (NYSE:FENG). D E Shaw has a $0.6 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Sitting at the No. 2 spot is Jim Simons of Renaissance Technologies, with a $0.6 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Some other peers that are bullish include Steven Cohen’s SAC Capital Advisors, Lei Zhang’s Hillhouse Capital Management and Jacob Gottlieb’s Visium Asset Management.

With a general bullishness amongst the heavyweights, key money managers were breaking ground themselves. Two Sigma Advisors, managed by John Overdeck and David Siegel, assembled the most valuable position in Phoenix New Media Ltd ADR (NYSE:FENG). Two Sigma Advisors had 0.1 million invested in the company at the end of the quarter.

How are insiders trading Phoenix New Media Ltd ADR (NYSE:FENG)?

Insider buying is best served when the company in question has experienced transactions within the past 180 days. Over the last six-month time period, Phoenix New Media Ltd ADR (NYSE:FENG) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Phoenix New Media Ltd ADR (NYSE:FENG). These stocks are Tucows Inc. (USA) (NYSEAMEX:TCX), TheStreet, Inc. (NASDAQ:TST), China Finance Online Co. (ADR) (NASDAQ:JRJC), Local Corporation (NASDAQ:LOCM), and Autobytel Inc. (NASDAQ:ABTL). This group of stocks are the members of the internet information providers industry and their market caps are similar to FENG’s market cap.

With the returns shown by the aforementioned studies, everyday investors must always monitor hedge fund and insider trading activity, and Phoenix New Media Ltd ADR (NYSE:FENG) shareholders fit into this picture quite nicely.

Click here to learn why you should track hedge funds