Siliconware Precision Industries (ADR) (NASDAQ:SPIL) investors should pay attention to a decrease in activity from the world’s largest hedge funds recently.
In the financial world, there are plenty of metrics market participants can use to monitor stocks. A duo of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best fund managers can outclass the S&P 500 by a healthy margin (see just how much).
Equally as key, optimistic insider trading activity is a second way to break down the marketplace. There are a number of stimuli for an upper level exec to drop shares of his or her company, but only one, very clear reason why they would buy. Plenty of academic studies have demonstrated the market-beating potential of this tactic if investors know what to do (learn more here).
Keeping this in mind, let’s take a gander at the recent action surrounding Siliconware Precision Industries (ADR) (NASDAQ:SPIL).
How have hedgies been trading Siliconware Precision Industries (ADR) (NASDAQ:SPIL)?
At year’s end, a total of 8 of the hedge funds we track were bullish in this stock, a change of 0% from the previous quarter. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were upping their stakes substantially.
When looking at the hedgies we track, Millennium Management, managed by Israel Englander, holds the most valuable position in Siliconware Precision Industries (ADR) (NASDAQ:SPIL). Millennium Management has a $1.6 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On Millennium Management’s heels is Jim Simons of Renaissance Technologies, with a $0.8 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining peers that hold long positions include Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Cliff Asness’s AQR Capital Management and Ken Griffin’s Citadel Investment Group.
Judging by the fact that Siliconware Precision Industries (ADR) (NASDAQ:SPIL) has witnessed bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there exists a select few fund managers that elected to cut their entire stakes at the end of the year. Intriguingly, David Costen Haley’s HBK Investments said goodbye to the largest position of all the hedgies we track, comprising about $0.1 million in stock. These transactions are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
How are insiders trading Siliconware Precision Industries (ADR) (NASDAQ:SPIL)?
Insider purchases made by high-level executives is best served when the company in question has seen transactions within the past half-year. Over the last half-year time frame, Siliconware Precision Industries (ADR) (NASDAQ:SPIL) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Siliconware Precision Industries (ADR) (NASDAQ:SPIL). These stocks are Synopsys, Inc. (NASDAQ:SNPS), Advantest Corp (ADR) (NYSE:ATE), United Microelectronics Corp (ADR) (NYSE:UMC), Cymer, Inc. (NASDAQ:CYMI), and Teradyne, Inc. (NYSE:TER). This group of stocks are in the semiconductor equipment & materials industry and their market caps match SPIL’s market cap.
