Arrow Electronics, Inc. (NYSE:ARW) has experienced an increase in hedge fund interest recently.
At the moment, there are many methods market participants can use to analyze publicly traded companies. Some 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 top picks of the top money managers can outperform their index-focused peers by a very impressive amount (see just how much).
Equally as integral, optimistic insider trading activity is another way to parse down the financial markets. Just as you’d expect, there are lots of incentives for an insider to drop shares of his or her company, but only one, very clear reason why they would behave bullishly. Various empirical studies have demonstrated the impressive potential of this strategy if piggybackers know what to do (learn more here).
With these “truths” under our belt, let’s take a peek at the latest action surrounding Arrow Electronics, Inc. (NYSE:ARW).
What does the smart money think about Arrow Electronics, Inc. (NYSE:ARW)?
At the end of the fourth quarter, a total of 18 of the hedge funds we track were bullish in this stock, a change of 20% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their holdings significantly.
When looking at the hedgies we track, Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, holds the most valuable position in Arrow Electronics, Inc. (NYSE:ARW). Arrowstreet Capital has a $164 million position in the stock, comprising 0.8% of its 13F portfolio. Coming in second is Steven Cohen of SAC Capital Advisors, with a $47 million position; 0.8% of its 13F portfolio is allocated to the stock. Some other hedgies that are bullish include Cliff Asness’s AQR Capital Management, Ken Griffin’s Citadel Investment Group and SAC Subsidiary’s Sigma Capital Management.
Consequently, key hedge funds were breaking ground themselves. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, created the largest position in Arrow Electronics, Inc. (NYSE:ARW). Arrowstreet Capital had 164 million invested in the company at the end of the quarter. SAC Subsidiary’s Sigma Capital Management also initiated a $11 million position during the quarter. The other funds with brand new ARW positions are Neil Chriss’s Hutchin Hill Capital, Curtis Macnguyen’s Ivory Capital (Investment Mgmt), and Ken Gray and Steve Walsh’s Bryn Mawr Capital.
Insider trading activity in Arrow Electronics, Inc. (NYSE:ARW)
Insider trading activity, especially when it’s bullish, is at its handiest when the primary stock in question has seen transactions within the past half-year. Over the latest six-month time period, Arrow Electronics, Inc. (NYSE:ARW) has seen zero unique insiders buying, and 8 insider sales (see the details of insider trades here).
With the returns shown by our strategies, retail investors must always pay attention to hedge fund and insider trading sentiment, and Arrow Electronics, Inc. (NYSE:ARW) applies perfectly to this mantra.
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