The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We have processed the filings of the more than 700 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their September 30 holdings, data that is available nowhere else. Should you consider Power Integrations Inc (NASDAQ:POWI) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Power Integrations Inc (NASDAQ:POWI) investors should be aware of an increase in hedge fund interest lately. At the end of this article we will also compare POWI to other stocks, including Trinseo S.A. (NYSE:TSE), Northwest Bancshares, Inc. (NASDAQ:NWBI), and Stamps.com Inc. (NASDAQ:STMP) to get a better sense of its popularity.
Follow Power Integrations Inc (NASDAQ:POWI)
Follow Power Integrations Inc (NASDAQ:POWI)
In the financial world there are many formulas stock market investors put to use to appraise stocks. A duo of the most innovative formulas are hedge fund and insider trading sentiment. Our experts have shown that, historically, those who follow the top picks of the top hedge fund managers can trounce the S&P 500 by a very impressive amount (see the details here).
With all of this in mind, let’s take a look at the latest action surrounding Power Integrations Inc (NASDAQ:POWI).
What have hedge funds been doing with Power Integrations Inc (NASDAQ:POWI)?
At the end of the third quarter, a total of 13 of the hedge funds tracked by Insider Monkey were bullish on this stock, a rise of 18% from the second quarter. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were increasing their holdings meaningfully (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Impax Asset Management, managed by Ian Simm, holds the largest position in Power Integrations Inc (NASDAQ:POWI). In its latest 13F filing, the fund has reported a $19.9 million position in the stock, comprising 1.4% of its 13F portfolio. The second largest stake is held by Legg Mason Capital Management, managed by Bill Miller, which holds a $5.7 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other members of the smart money with similar optimism consist of D. E. Shaw’s D E Shaw, John Overdeck and David Siegel’s Two Sigma Advisors and Dmitry Balyasny’s Balyasny Asset Management.
Now, key money managers were breaking ground themselves. Legg Mason Capital Management, managed by Bill Miller and the second largest holder, initiated the biggest position in Power Integrations Inc (NASDAQ:POWI) during the quarter. Dmitry Balyasny’s Balyasny Asset Management also made a fresh, $1.5 million investment in the stock during the quarter. The other funds with brand new POWI positions are Glenn Russell Dubin’s Highbridge Capital Management, and Joel Greenblatt’s Gotham Asset Management.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Power Integrations Inc (NASDAQ:POWI) but similarly valued. These stocks are Trinseo S.A. (NYSE:TSE), Northwest Bancshares, Inc. (NASDAQ:NWBI), Stamps.com Inc. (NASDAQ:STMP), and Cempra Inc (NASDAQ:CEMP). All of these stocks’ market caps resemble POWI’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TSE | 12 | 72320 | -2 |
| NWBI | 8 | 31853 | -4 |
| STMP | 27 | 207081 | 4 |
| CEMP | 21 | 180798 | 2 |
As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $123 million. That figure was only $39 million in POWI’s case. Stamps.com Inc. (NASDAQ:STMP) is the most popular stock in this table. On the other hand Northwest Bancshares, Inc. (NASDAQ:NWBI) is the least popular one with only 8 bullish hedge fund positions. Power Integrations Inc (NASDAQ:POWI) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard STMP might be a better candidate to consider a long position.
