Silicon Image, Inc. (SIMG): Are Hedge Funds Right About This Stock?

Silicon Image, Inc. (NASDAQ:SIMG) investors should pay attention to a decrease in enthusiasm from smart money in recent months.

To the average investor, there are a multitude of metrics shareholders can use to watch publicly traded companies. A couple of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top hedge fund managers can trounce the S&P 500 by a very impressive margin (see just how much).

Equally as beneficial, optimistic insider trading activity is a second way to break down the marketplace. Just as you’d expect, there are many stimuli for an insider to drop shares of his or her company, but only one, very obvious reason why they would buy. Various academic studies have demonstrated the useful potential of this method if shareholders understand what to do (learn more here).

With all of this in mind, let’s take a peek at the recent action encompassing Silicon Image, Inc. (NASDAQ:SIMG).

What does the smart money think about Silicon Image, Inc. (NASDAQ:SIMG)?

At year’s end, a total of 13 of the hedge funds we track were bullish in this stock, a change of -7% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their stakes considerably.

According to our comprehensive database, Jim Simons’s Renaissance Technologies had the largest position in Silicon Image, Inc. (NASDAQ:SIMG), worth close to $11.4 million, accounting for less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is Carlson Capital, managed by Clint Carlson, which held a $5 million position; 0.1% of its 13F portfolio is allocated to the company. Some other peers with similar optimism include D. E. Shaw’sD E Shaw, Mark Kingdon’s Kingdon Capital and Peter A. Wright’s P.A.W. CAPITAL PARTNERS.

Due to the fact that Silicon Image, Inc. (NASDAQ:SIMG) has faced a declination in interest from the smart money, we can see that there was a specific group of money managers that slashed their full holdings last quarter. At the top of the heap, Panayotis æTakisÆ Sparaggis’s Alkeon Capital Management sold off the largest stake of all the hedgies we monitor, totaling close to $9.5 million in stock., and Israel Englander of Millennium Management was right behind this move, as the fund sold off about $2.1 million worth. These moves are interesting, as total hedge fund interest fell by 1 funds last quarter.

What have insiders been doing with Silicon Image, Inc. (NASDAQ:SIMG)?

Insider trading activity, especially when it’s bullish, is best served when the company we’re looking at has seen transactions within the past six months. Over the last six-month time frame, Silicon Image, Inc. (NASDAQ:SIMG) has experienced 3 unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Silicon Image, Inc. (NASDAQ:SIMG). These stocks are Kopin Corporation (NASDAQ:KOPN), FormFactor, Inc. (NASDAQ:FORM), Inphi Corporation (NYSE:IPHI), and Entropic Communications, Inc. (NASDAQ:ENTR). This group of stocks belong to the semiconductor – broad line industry and their market caps are similar to SIMG’s market cap.

With the returns shown by Insider Monkey’s research, everyday investors should always watch hedge fund and insider trading activity, and Silicon Image, Inc. (NASDAQ:SIMG) is an important part of this process.

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