Advanced Micro Devices, Inc. (AMD): 1 Indicator That Will Have You Jumping
Advanced Micro Devices, Inc. (NYSE:AMD) is one of the most widely discussed stocks on the Internet. For bulls, this data will help you sleep at night.
In the eyes of many market players, hedge funds are viewed as useless, outdated investment vehicles of a period lost to current times. Although there are over 8,000 hedge funds in operation in present day, Insider Monkey focuses on the moguls of this group, close to 525 funds. Analysts calculate that this group oversees the lion's share of all hedge funds' total capital, and by monitoring their highest quality investments, we've formulated a number of investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we've began to sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).
Just as useful, positive insider trading sentiment is another way to look at the world of equities. Obviously, there are a number of stimuli for an insider to cut shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Various empirical studies have demonstrated the useful potential of this strategy if you understand what to do (learn more here).
Thus, let's analyze the newest info for Advanced Micro Devices, Inc. (NYSE:AMD).
What have hedge funds been doing with Advanced Micro Devices, Inc. (NYSE:AMD)?
At the end of the second quarter, a total of 17 of the hedge funds we track were bullish in this stock, a change of 21% from the previous quarter. With hedge funds' sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their stakes substantially.
When using filings from the hedgies we track, First Eagle Investment Management, managed by Matt McLennan, holds the biggest position in Advanced Micro Devices, Inc. (NYSE:AMD). First Eagle Investment Management has a $54.3 million position in the stock, comprising 0.2% of its 13F portfolio. On First Eagle Investment Management's heels is Citadel Investment Group, managed by Ken Griffin, which held a $52.7 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining hedgies with similar optimism include D. E. Shaw's D E Shaw, and Cliff Asness's AQR Capital Management.
As aggregate interest spiked, certain bigger names were leading the bulls' herd. First Eagle Investment Management, managed by Matt McLennan, initiated the most outsized position in Advanced Micro Devices, Inc. (NYSE:AMD). First Eagle Investment Management had 54.3 million invested in the company at the end of the quarter. Ken Griffin's Citadel Investment Group also made a $52.7 million investment in the stock during the quarter. The following funds were also among the new AMD investors: Howard Marks's Oaktree Capital Management, Michael Johnston's Steelhead Partners, and D. E. Shaw's D E Shaw.
What do corporate executives and insiders think about Advanced Micro Devices, Inc. (NYSE:AMD)?
Insider buying is particularly usable when the primary stock in question has seen transactions within the past six months. Over the latest six-month time frame, Advanced Micro Devices, Inc. (NYSE:AMD) has experienced zero unique insiders buying, and 1 insider sales (see the details of insider trades here).
We'll also examine the relationship between both of these indicators in other stocks similar to Advanced Micro Devices, Inc. (NYSE:AMD). These stocks are Intersil Corp (NASDAQ:ISIL), Mellanox Technologies, Ltd. (NASDAQ:MLNX), Cypress Semiconductor Corporation (NASDAQ:CY), Cavium Inc (NASDAQ:CAVM), and Vishay Intertechnology (NYSE:VSH). This group of stocks are in the semiconductor - broad line industry and their market caps are similar to AMD's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
Intersil Corp (NASDAQ:ISIL)
Mellanox Technologies, Ltd. (NASDAQ:MLNX)
Cypress Semiconductor Corporation (NASDAQ:CY)
Cavium Inc (NASDAQ:CAVM)
Vishay Intertechnology (NYSE:VSH)
Using the returns explained by our tactics, average investors should always track hedge fund and insider trading activity, and Advanced Micro Devices, Inc. (NYSE:AMD) is no exception.